Question

The receivable that is usually evidenced by a formal instrument of credit is a(n) A. trade receivable.B. note receivable.C. accounts receivable.D. income tax receivable

Answer 1

B. note receivable

Step-by-step explanation:

The note receivable require the debtor to pay the promise amount at the moment that was agreed.

The note receivable represent a claim over a debtor of credit issued as evidence of debt, it usually requiere the debtor to pay interest.

If the note receivable is due within 1 year it's considered a current asset in the balance sheet.