When referring to a note receivable or promissory note, a. the note is not considered a formal credit instrument b. the note cannot be factored to another party c. the maker is the party to whom the money is due d. the note may be used to settle an accounts receivable

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Business

Mayo

9 May, 10:41

When referring to a note receivable or promissory note, a. the note is not considered a formal credit instrument b. the note cannot be factored to another party c. the maker is the party to whom the money is due d. the note may be used to settle an accounts receivable

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Reid Chung · Answer 1

d. The Note may be used to settle an accounts Receivable.

Explanation:

The note receivable write by parties in which on part accept it to pay certain amount after specific period. It is credit instrument and can be use as medium of exchange for payment. The maker is not party to whom the money is due actually it opposite of that. It is instrument that can settle through paying receivable.