Question

multiple select question
select all that apply
given the descriptions below, which are true regarding notes receivable?

notes receivable is classified as a liability.

notes receivable is classified as an asset.

it is the promise of another entity to pay a specific sum of money on a specified future date.

another name for a note receivable is a promissory note.

need help? review these concept resources.

read about the concept

Explanation:

• Notes receivable represent amounts owed to a company, so they are an asset, not a liability.
• By definition, a note receivable is a written promise from another party to pay a fixed amount at a set future date.
• Notes receivable are also commonly referred to as promissory notes, as they are formal promissory agreements.

Answer:

B. Notes receivable is classified as an asset.
C. It is the promise of another entity to pay a specific sum of money on a specified future date.
D. Another name for a note receivable is a promissory note.