Notes receivable typically arise from sales to customers.Notes receivable typically arise from loans to other entities including affiliated companies;loans to stockholders and employees;and only occasionally from the sale of merchandise or services.

Question

Quizplus · Accepted Answer

The statement in the question is false. Notes receivable typically arise from sales to customers, but they can also arise from loans to other entities, affiliated companies, stockholders, and employees. They may also arise from the sale of merchandise or services, but this is less common.

Notes Receivable Typically Arise from Sales to Customers