Question

a notes receivable typically has longer terms than an accounts receivable and interest usually needs to be paid back along with the principal

Answer 1

A notes receivable is a financial asset that involves repayment of both the principal amount borrowed and any agreed-upon interest. It typically has longer terms than an accounts receivable.

Step-by-step explanation:

A notes receivable is a type of financial asset that represents a formal written promise to receive a specific amount of money at a future date, typically with a longer repayment term than an accounts receivable. Unlike an accounts receivable, which represents money owed by customers for goods or services already provided, a notes receivable involves the borrower paying back both the principal amount borrowed and any agreed-upon interest.