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kaheart [24]
3 years ago
15

Which of the following statements about a note receivable is true?A : It can be transferred to another party by endorsement. B :

It can only be collected by a bank. C : It eliminates the need for an allowance for doubtful accounts. D : It takes the place of checks in a business firm.
Social Studies
1 answer:
Naddik [55]3 years ago
6 0

Answer:

A : It can be transferred to another party by endorsement.

Explanation:

Notes receivable:-

It is a kind of an account on balance sheet. If the life of this account is less than one year, it is usually under current assets section. It is a written promise which is used to receive the money on the fixed future date. The money involved in this accounts is both the principle and the interest.

It can be collected between any two parties. It is just a promise account and thus, does not eliminate any kind of allowance.

Hence, the correct statement is:-<u> A : It can be transferred to another party by endorsement.</u>

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