Question

A note receivable is a negotiable instrument which can be transferred to another party by endorsement. takes the place of checks in a business firm. can only be collected by a bank. eliminates the need for a bad debts allowance.

Answer 1

The correct answer would be the first option. A note receivable can be transferred to another party by endorsement. It is described as a current asset of an organization that  claims a written promissory note from other organization. It is usually made up of the principal and the interest amount.