Respuesta :
A note receivable (promissory note) : Is a loan or written promise to pay a specified amount of money at a certain date.
What are Notes Receivable?
A note receivable is also known as a promissory note.
Notes receivable are a balance sheet item that records the value of promissory notes that a business is owed and should receive payment for. A written promissory note gives the holder, or bearer, the right to receive the amount outlined in the legal agreement. Promissory notes are a written promise to pay cash to another party on or before a specified future date.
When the note is due within less than a year, it is considered a current asset on the balance sheet of the company the note is owed to. If its due date is more than a year in the future, it is considered a non-current asset.
The interest income on notes receivable is recognized on the income statement. Therefore, when payment is made on a note receivable, both the balance sheet and the income statement are affected.
Thus, we can conclude that the correct option is B. A note receivable (promissory note) : Is a loan or written promise to pay a specified amount of money at a certain date.
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