A promissory note received from a customer in exchange for an account receivable: Is a cash equivalent for the recipient Is an account receivable for the recipient Is a note receivable for the recipient Is a short-term investment for the recipient Is a note payable for the recipient

Finance Mar 23, 2021

A promissory note received from a customer in exchange for an account receivable:

1. Is a cash equivalent for the recipient
2. Is an account receivable for the recipient
3. Is a note receivable for the recipient
4. Is a short-term investment for the recipient
5. Is a note payable for the recipient

Expert Solution

Answer: C . Is a note receivable for the recipient

Note receivables are documents which shows the credit balance of the customer. It is a kind of promise which is written legally on document to receive money on a future date. Future receipts of such payment include both principle amount and interest.

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