A promissory note:A) Is a short-term investment for the maker.B) Is a written promise to pay a specified amount of money at a certain date.C) Is a liability to the payee.D) Is another name for an installment receivable.E) Cannot be used in payment of an account receivable.

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Annabelle Rodriguez · Accepted Answer

Final Answer : B, Explanation :  A promissory note is a written promise to pay a specified amount of money at a certain date, making it a legally binding agreement between the parties involved. It is typically used as a means of borrowing or lending money and creates a liability for the maker, who is obligated to pay the amount owing to the payee. It is not a short-term investment or another name for an installment receivable, and it cannot be used in payment of an account receivable.

A promissory note:

A) Is a short-term investment for the maker.
B) Is a written promise to pay a specified amount of money at a certain date.
C) Is a liability to the payee.
D) Is another name for an installment receivable.
E) Cannot be used in payment of an account receivable.

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