An unconditional written promise to pay a definite sum of money on demand or on a defined future date (or dates)is a(n):
A) Unearned revenue.
B) Prepaid expense.
C) Account payable.
D) Promissory note.
E) Account receivable.

Question

Quizplus · Accepted Answer

A promissory note is a legal instrument that serves as an unconditional promise to pay a specific amount of money to the holder of the note at a future date or on demand. It is a written document that is used as a loan agreement between two parties. The lender (payee) agrees to loan money to the borrower (maker) who promises to pay back the loan with interest on a specific date or when the lender requests payment.

An Unconditional Written Promise to Pay a Definite Sum of Money