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How Does an Account Receivable Differ from a Note Receivable

Question 5

Multiple Choice

How does an account receivable differ from a note receivable?


A) A note receivable is an asset while an account receivable is not.
B) An account receivable is a written pledge while a note receivable is not.
C) An account receivable is always an amount due from the company's customers while a note receivable is always an amount due from a bank.
D) Notes receivable are written pledges while Accounts Receivable are not.

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