Lundy Company will have a bond discount that should be amortized and will be $1,900.
$21,900 worth of interest was paid in the first six months after the bonds were issued [$438,000 carrying amount x 10% effective rate x (6 x 12)]. The regular cash payment equals $20,000 [$500,000 face amount x 8% stated rate x (6 + 12)] every period. The amount of the discount that needs to be amortised over this 6-month interest term is the $1,900 ($21,900 - $20,000) difference.
A bond's bond discount is the difference between the market price and the principal that will be due when the bond matures. Because the higher face value is paid when the bond matures, a bond that was issued at a discount has a market price below its face value. This results in capital growth over time. When a bond offers a coupon rate that is less than the going rate of interest, it will trade at a discount. Investors will pay less for a bond with a coupon rate lower than the going rate because they want a larger yield; the initial discount offsets the lower coupon rate.
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Economic value added is also referred to as ______. Multiple choice question. Opportunity cost of capital residual income net income rate of return
Economic value added is also referred to as net income. Net income is also called as the net earnings, which is sales minus cost of goods sold.
The Economic value added, which is also referred to as the economic profit or EVA is considered to be the value a business tends to generate from its invested capital. So, the economic value added is considered to be an estimate of a firm's economic profit.
However, here the value is said to be created in excess of the required return of the company's shareholders. So, the EVA is considered to be the net profit less the capital charge in order to raise the firm's capital.
Hence, Economic value added is also referred to as net income.
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PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!
Pete sold 150 shares of stock A at $10.98 per share through his broker. His broker charges $28 per trade. How much money did Pete receive from the sale after the broker took his fee?
A. $1,647
B. $1,619
C. $1,098
D. $1,070
Answer:
B. $1,619
Explanation:
150×10.98= 1647
1647-28=$1619
Because of the large number of resumes that a hiring manager may have to review, you want your resume to:
Because of the large number of resumes that a hiring manager may have to review one wants his resume to be easy to read and contain the information necessary for the hiring manager to make an informed decision about you.
The most effective resumes are neat, professional, and devoid of grammatical and spelling mistakes. contains true and current data regarding you. makes it clear to the prospective employers why you are a suitable candidate for the role you are applying for. You shouldn't refer to oneself by a nickname on your CV. any talk about compensation or vacation time. unnecessary personal information You should just say that connections are available to your prospective employers if they should require them whenever providing references on your resume. Do not list references in their entirety.
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All the following are considered to be benefits of participative budgeting, except for: (please provide the necessary brief explanation to justify)
A. Individuals at all organizational levels are recognized as being part of a team; this results in greater support for the organization.
B. The budget estimates are prepared by those in directly involved in activities.
C. When managers set their own targets for the budget, top management need not be concerned with the overall profitability of operations.
D. Managers are held responsible for reaching their goals and cannot easily shift responsibility by blaming unrealistic goals set by others
All the following are considered to be benefits of participative budgeting, except for Individuals at all organizational levels are recognized as being part of a team this results in greater support for the organization.
The fact that participative budgeting is motivational, or more likely to inspire participants to work toward the organization's overall goals, is one of its main benefits. To flip a card, tap it.Through the concept of "participative budgeting, those who will be affected by the budget are actively involved in its preparation. With this strategy, lower-level managers feel more invested in the final budget.Cities all across the world employ participatory budgeting to include residents in decisions about government spending that affect or benefit them. Although the mechanics and procedures of participatory budgeting can differ, they often adhere to the following steps: community involvement and outreach.
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A,B and D are True C is False : It is not a benfit that Top management will not be concerned as targets set by managers.
A. True: Participatory budgeting encourages involvement from all levels, which boosts the organization's support.
B. This is accurate; those participating in the activity and in a position to offer more accurate estimations contribute to the budget inputs.
C. FALSE: Top management not caring about goals set by managers is not a benefit. The company's top management is in charge of overall performance, and they also have goals.
D. True: Managers of each function, profit centre, or cost centre are in charge of achieving the objective, and they cannot be held accountable for setting unrealistic goals since everyone has a say in how they are determined.
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What is the effect of scarce resources on products?
As a resource becomes scarce, the price of recovery and product rises. this makes it to research new resources and discover Methods to use available ones additionally efficiently and cost-effective.
Natural coffers are utilized to produce feeds, energy, and raw essentialities for the manufacturing of products. all of the reflections that people devour come from shops or creatures. herbal means conforming of coal, natural energy, and oil painting give heat, mild, and energy.
Sources can be marked in the following ways( a) On the model of origin- biotic and abiotic( b) On the premise of exhaustibility renewable and non-renewable ( c) On the premise of proprietorship- character, community, public and global( d) On the base of the fashionability of progression- capability, evolved force.
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A Mercedes-Benz priced the same as a Ford Focus might not sell as well because of:
a. history of performance of similar Mercedes products
b. overall company reputation
c. psychological factors
Which events occurred in Florida before the stock market crash and helped bring about the Great Depression
Hurricanes often hit the United States between 1926 and 1928. Floridans had therefore started to experience difficulty prior to the stock market crash, which sparked the Great Depression in 1929.
A stock market, also known as an equity market or share market, is the collection of individuals who buy and sell stocks, also known as shares, which represent ownership stakes in corporations. These securities may be listed on a public stock exchange or only traded privately, such as shares of private corporations that are offered to investors through equity crowdfunding platforms. An investing plan is often included when making an investment. The buying and selling of shares, bonds, and other securities takes place on a stock exchange. Stocks from several big businesses are traded on a stock market. This increases the stock's liquidity and, as a result, its allure to many investors. Additionally, the exchange could guarantee settlement.
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How many years must a farm be run organically before its produce can be labeled as organic?
Access the full arrangement of assets that make up the USDA natural guidelines. The natural yield creation guidelines require that: Land probably had no precluded substances applied to it for no less than 3 years before the reap of a natural harvest.
In the event of a multi-fixing item where at least 95% of fixings are of the affirmed beginning, can be named as 'Ensured Natural'. Under the PGS-India framework: if there should be an occurrence of a single fixing item where all necessities have been met, might be named 'PGS-Natural'.
Complete an endorsed instructional class. ranch and deal with the land remembered for the application. register with, and be supported as, a natural administrator by a confidential examination body. have a base ranch area of 3 hectares.
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Which statement best describes the AICPA ethics rules relating to a member's failure to file his or her personal tax return in a timely manner?
The member is strongly encouraged to file his or her personal tax returns in a timely manner.
The failure to file a personal tax return in a timely manner must be disclosed to all clients and potential clients.
The failure to file a personal tax return in a timely manner is usually considered an act discreditable to the profession.
The member is not in violation of any ethics rules as long as the failure to file a personal tax return in a timely manner was due to a heavy workload.
The statement which best describes the AICPA ethics rules relating to a member's failure to file his or her personal tax return in a timely manner is that, the failure to file a personal tax return in a timely manner is usually considered as an act discreditable to the profession.
As per AICPA ethics rules, an advertisement therefore should not be misleading or false as a result of which people tend to get deceived and then they take decisions that end up unsatisfied. So, there are four sections of the AICPA Code of Professional Conduct.
However, there are the first section entails introductions, general advice, definitions, to the AICPA members. Thus, here a member must maintain the objectivity and also integrity, which shall be free of conflicts of the interest. So, the failure to file a personal tax return is not acceptable.
Hence, option C is correct.
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What is the concept of resources in economics?
A resource is an item or activity that is utilized in economics to generate commodities and services that cater to the needs and desires of people.
The definition of economics itself is the study of how society manages and distributes its limited resources. Economic resources are the ingredients that go into making products or rendering services. In other words, they are the resources that are employed as inputs to produce goods or support the provision of services. Human resources, like labor and management, and nonhuman resources, such land, capital goods, financial resources, and technology, are two categories of economic resources.
An economy is a collection of institutions and businesses that either directly participate in or assist the creation and transfer of commodities and services. The materials we utilize to manufacture and dispense products and services are known as economic resources. The exact ratio of each production element will vary from product to product and from service to service, but the objective is to employ resources as efficiently as possible to maximize output at the lowest feasible cost. Resource misallocation or misuse may lead to the collapse of entire economies and enterprises.
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2. Within the range of market demand, which of the following is consistent with the condition of a natural monopoly
A natural monopoly is a market structure in which a single firm is the sole producer of a good or service for which no close substitutes exist. This is usually due to the large amount of capital required to produce the good or service, or because the cost of production declines as the firm increases its output.
In these cases, a single firm is able to produce the good or service at a lower price than if there were multiple firms competing in the market. This can create a situation in which the firm can charge a price that is higher than the competitive price because they have little to no competition. Additionally, the cost of entry into the market is often prohibitively high, which further reduces the number of firms that can compete in the market.
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The future value of $100 received today and deposited at 6 percent for four years is ________.A) $126B) $ 79C) $124D) $116
The future value of $100 put at 6% for four years and deposited today is $100*6%*4+100=$124.
The act of depositing.: the placement of anything for safekeeping, such as.: funds deposited in a bank. depositing money or withdrawing it. A person or item is put or left somewhere when they are deposited there. When you deposit anything, you ensure that it will be safe until it is required once more. When you deposit money, you put it into a savings or checking account. A "deposit" is the act of giving money to a bank or other financial organization for safekeeping. You send a payment by sending it; you deposit money at a bank. Banks accept deposits from consumers in exchange for an annual interest payment. The majority of these deposits are subsequently used by the bank to provide loans to other clients.
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Conducting business with ______ helps forge character and maximize competencies. Multiple choice question. co-worker distrust regard for profit good publicity complete honesty
Conducting business with complete honesty helps forge character and maximize competencies.
Business ethics is the study of appropriate corporate behavior when it comes to potentially contentious issues like corporate governance, insider trading, bribery, discrimination, corporate social responsibility, fiduciary duties, and much more. Business ethics occasionally serve as a fundamental rule that businesses can follow to win the public's approval, but the law frequently serves as the standard.
For a number of reasons, good business ethics are necessary for success in the modern marketplace. Most importantly, clearly defined ethics programs create a code of conduct that influences behavior among employees, from CEOs to middle management to the newest and youngest workers. The business develops a reputation for ethical behavior when all of its personnel act ethically.
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Consider a project that costs $250 now and is expected to generate $98 in net revenues at the end of each of the next three years. If the MARR is 5%, the future worth of this project is __________. A. $18.24 B. $19.54 C. $22.33 D. $18.29
(B.) $19.54, Consider a $250 project that will yield $98 in net revenues at the conclusion of each of the next three years. The future value of this project is $19.54 if the MARR is 5%.
Net revenue is the amount of money a business makes in a particular time after subtracting any discounts or concessions offered to customers. Particularly in the retail and wholesale industries, many companies provide discounts on purchases to entice clients to acquire their goods or services. The difference between a company's gross revenue and all of its costs, including fixed costs, is known as net revenue or net income. Because gross revenue only gives you a partial image of your company's total picture, it's critical to understand the differences between the two. Budgeting cannot be done with the gross sales of your business.
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If the interest paid on an account is 10% compounded annually, $6,902 now is basically equivalent to $10,000 five years from now. True False
The claim that $6,902 today is roughly comparable to $10,000 after five years if interest on an account is compounded at a rate of 10% yearly is untrue.
The sum incurred from borrowing money that is owed to a lender is known as interest payable, or accumulated interest. To keep track of the debts that they owe, businesses enter this value in their ledgers. On the balance sheet of a company, it functions as a liability account.
On which, assets or obligations, is interest paid?A liability, paying interest is often listed in the balance sheet's current liabilities section. The income statement shows the corresponding interest expense that makes up interest due for the amount relevant to the reporting period.
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If the marginal propensity to consume is 0.9, the government increases purchases by $100, and net exports decline by $60, the equilibrium level of real gross domestic product will
The equilibrium level of the real gross domestic product will increase by up to $400.
The percentage of an overall salary increase that a customer spends on purchasing goods and services rather than saving is known as the marginal propensity to consume (MPC) in economics.
The MPC calculates how much money a person decides to spend on services and products rather than save as their income rises. In light of this, the MPC formula is MPC = change in consumption/change in income. The MPC in the aforementioned example would be 500/1000, or 0.5.
MPC is the percentage of additional money that a person spends. For instance, if a household receives an additional dollar of disposable income and its marginal propensity to consume is 0.65, it will spend 65 cents of that dollar and save 35 cents.
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How many standard deviations is the upper control limit, UCL, above the long-run center line, X-bar-bar: A.1
B.2
C.3
D.6
E.12
The standard deviation is the upper control limit, UCL, above the long-run center line, X-bar-bar is 3. Option C is correct.
UCL (Upper Control Limit) FOR A XBAR CHART:
Typically, control limits are set at a distance of +/-3 standard deviations from the meridian. The Process is deemed to be in control when the Subgroup Values are between the Upper and Lower Control Limits, thus +3. So Upper control limit formula will be:
UCL (Upper Control Limit) = MEAN + 3 * (STDEV / SQRT(NO. OF SAMPLES))
Upper Control Limit (UCL) is a term that refers to a value that is larger than the maximum value of a chemical or physical parameter that can be attributed to natural fluctuations and sampling and that the Administrator and the operator have agreed upon prior to starting mining.
The term "standard deviation is a measurement of the data's dispersion from the mean.
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Procter and Gamble (PG) paid an annual dividend of $ 2. 87 in 2018. You expect PG to increase its dividends by 8. 0 % per year for the next five years (through 2023), and thereafter by 3. 0 % per year. If the appropriate equity cost of capital for Procter and Gamble is 8. 0 % per year, use the dividend-discount model to estimate its value per share at the end of 2018
The value per share at the end of the year 2018 is $73.47 .
What is dividend discount model?The dividend discount model (DDM), a quantitative technique for forecasting stock prices, is based on the idea that, when discounted back to their present value, the price of a company's shares today is equal to the total of all of its future dividend payments. It aims to determine a stock's fair value regardless of the current market conditions and takes into account the dividend distribution considerations and the anticipated market returns. The stock is cheap and should be purchased if the value derived from the DDM is more than the price at which shares are currently trading, and vice versa.
Solution: As per dividend discount model, share price will be equal to present value of future dividends.
Dividend at the end of 2019 = 2.87*(1+8%)
Dividend at end of 2020 = 2.87*(1+8%)^2
Dividend at end of 2021 = 2.87*(1+8%)^3
Dividend at end of 2022 = 2.87*(1+8%)^4
Dividend at end of 2023 = 2.87*(1+8%)^5
hence share price at the end of 2018 = 2.87*(1+8%)/1.08 +2.87*(1+8%)^2/1.08^2 +2.87*(1+8%)^3/1.08^3+ 2.87*(1+8%)^4/1.08^4+2.87*(1+8%)^5/1.08^5 + 2.87*(1+8%)^5*(1+3%)/(8%-3%)*(1.08)^5
=2.87 + 2.87 +2.87 +2.87 +2.87 +59.122
=$73.47
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Which of the following statements is true regarding an import-oriented distribution structure?
A. The importer-wholesaler traditionally performs most of the marketing functions.
B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system.
C. Several independent agencies providing functions such as advertising, marketing research, financing are part of this distribution structure.
D. The idea of a channel as a chain of intermediaries performing specific activities is common.
E. This distribution system is national in scope.
A. The importer-wholesaler traditionally performs most of the marketing functions.
What happens in an import-oriented distribution structure?In an import-oriented or traditional distribution structure, an importer controls a fixed supply of goods, and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.
What are the advantages of import oriented economy?Advantages of Importing:
Also the importer can have the much cheaper products from the foreign market due to low labor cost, low taxes etc. in terms of quality, the importer can have the higher quality goods and produce the finished goods with high quality and extend the business profit margins.
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What are 5 scarce resources?
The five scarce resources are fresh water, fossil fuels, land, minerals and biodiversity.
Scarce resources are those that are present in limited amounts.
1. Fresh water: While two-thirds of the Earth's surface is covered in water, only 2.5% of it is fresh water. This means that the majority of the world's population struggles to access safe and clean drinking water.
2. Fossil fuels: Fossil fuels, such as oil and gas, are finite resources. This means that as the demand for these resources increases, the supply decreases and prices increase.
3. Land: With an increasing human population, the demand for land is greater than ever. The availability of land suitable for farming, building, and other uses is limited, making it a valuable and scarce resource.
4. Minerals: Minerals are essential for modern life, and are used in everything from electronics to medicines. Many minerals are scarce and difficult to extract, meaning that their supply is limited and their prices can be high.
5. Biodiversity: Biodiversity is the variety of plant and animal species that inhabit our planet. As habitats are destroyed, species become extinct and biodiversity is lost forever. This can reduce the resources available to humans and other species, making it a precious and rare resource.
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Define and differentiate the various functional areas, departments, or business units of your chosen company.
Five Guys operates in the fast food industry and like most fast food chains they have several functional areas or departments that work together to keep the business running smoothly. These include Operations, Marketing, Finance, Human Resources, Supply Chain, and IT
Operations: This department is responsible for overseeing the restaurant's day-to-day operations, including food preparation, customer service, and inventory management. increase. Create advertising campaigns, manage social media accounts, and create promotional materials.
Finance: This department is responsible for managing the financial aspects of the business, including budgeting, forecasting, and financial reporting.
Human Resources Department: This department is responsible for managing our employees, including recruitment, recruitment, training, and benefits administration.
Supply Chain: This division is responsible for the procurement of restaurant ingredients, equipment, and other supplies, as well as managing logistics and distribution.
IT: This department is responsible for maintaining and updating the company's computer systems, networks, and software applications.
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Printer a prints 100 pages for $23.99. printer b prints 275 sheets for $63.99. which printer has the better rate of cost per page? printer a, because the approximate rate of printer a, $0.24 per page, is greater than the approximate rate of printer b, $0.23 per page printer a, because the approximate rate of printer a, $4.16 per page, is less than the approximate rate of printer b, $4.30 per page printer b, because the approximate rate of printer a, $0.24 per page, is greater than the approximate rate of printer b, $0.23 per page printer b, because the approximate rate of printer a, $4.16 per page, is less than the approximate rate of printer b, $4.30 per page
Printer b has the better rate of cost per page because it has a lower cost per page.
What is rate of cost?Rate of cost is the amount of money charged for a particular product or service. It is usually expressed in terms of the cost per unit of output. The rate of cost is determined by a variety of factors, including the cost of production materials, labor costs, overhead costs, and the demand for the product or service. An important factor in the determination of the rate of cost is the availability of substitutes for the product or service in question.
Printer b has an approximate rate of $0.23 per page, while printer a has an approximate rate of $0.24 per page. This means that printer b is cheaper per page than printer a. Additionally, printer b has an approximate rate of $4.30 per page, while printer a has an approximate rate of $4.16 per page. This means that printer b is more cost effective overall than printer a.
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Which of the following is most likely to contribute to email chains? A. Including a subject line in the message B. Including attachments in the email C. Providing contact details in the subject line of the message D. Using the "reply to all feature E. Using a signature block in the message
The function most likely to contribute to email chains is 'reply to all features' option d is correct.
An email thread is the "chain" made up of the original message, any replies, and any messages that have been forwarded. Tools for email threading collect related messages for easy perusal. For instance, say you send an email invitation to a friend to lunch.
By using the reply all feature, you can send an email with your response to everyone who got the original email as well as the sender of the prior message. Your email is sent to the contacts listed in the "To" and "Cc" fields of the previous messages.
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According to the interest parity condition, if the domestic interest rate is 12 percent and the foreign interest rate is 10 percent, then the expected ________ of the foreign currency must be ________ percent. depreciation; 4 appreciation; 2 appreciation; 4 depreciation; 2
According to the interest parity condition, if the domestic interest rate is 12 percent and the foreign interest rate is 10 percent, then the expected depreciation of the foreign currency must be 2 percent.
Give a brief account on domestic interest rate.To meet certain economic objectives, a nation frequently adopts monetary policy that affects the country's interest rates. The nation is purposefully influencing the money supply, credit availability, and borrowing costs whether it is trying to spur employment growth or control inflation. As a result, modifications to the country's monetary policy that affect interest rates modify the value of its currency. The value of that nation's currency will vary as a result of an increase or decrease in interest rates, with subsequent effects on the value of the global exchange rate.
The value of a nation's currency typically rises when interest rates are higher. The demand for and value of the domestic currency rises when interest rates are higher because they tend to draw in foreign investment. Lower interest rates, on the other hand, are sometimes unappealing for foreign investment and reduce the currency's relative value.
Hence, option (d) can be considered as relevant.
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Identify the financial statement (or statements) that each account would appear on. Use I for Income Statement, RE for Statement of Retained Earnings, B for Balance Sheet, and C for Statement of Cash Flows. (If an input field is not used in the table, leave the input field empty; do not select a label. )
Different items will appear on different financial statement and one can appear on more than one.
a. Accounts Payable - B
b. Cash - B &C
c. Common Stock - B
d. Accounts Receivable -B
e. Rent Expense- I
f. Service Revenue- I
g. Office Supplies -B
h. Dividends -RE
i. Land- B
j. Salaries Expenses - I
Cash will appear both on Balance sheet and cash flow statement. on Balance sheet it will appear as assets. Financial statements are documents that describe a company's operations and financial performance.
Government organizations, accounting companies, etc. frequently audit financial statements to guarantee accuracy and for tax, financing, or investing purposes.
The balance sheet, income statement, statement of cash flow, and statement of changes in equity are the four basic financial statements for for-profit entities. A similar but distinct set of financial statements is used by nonprofit organizations.
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Correct question:
Identify the financial statement (or statements) that each account would appear on. Use I for Income Statement, RE for Statement of Retained Earnings, B for Balance Sheet, and C for Statement of Cash Flows. (If an input field is not used in the table, leave the input field empty; do not select a label. )
a. Accounts Payable
b. Cash
c. Common Stock
d. Accounts Receivable
e. Rent Expense
f. Service Revenue
g. Office Supplies
h. Dividends
i. Land
j. Salaries Expenses
what box is it please answer if u know :)
Firstly, let's understand the meaning of ammonities.
It is the name of fossil shell of an cephalopods of the subfamily Ammonoidea.Now, the answer is:
The scientists were not certain what living ammonites looked like because the insects or creatures living in those shells could be of different looks and as no living ammonite has ever been found(only we have discovered their shells through fossils) thus, no prediction could be done about it.
What are the 6 economic social goals?
The six economic and social goals are economic growth, full employment, price stability, equitable distribution of income, the balance of payments equilibrium, and economic stability.
1. Economic growth: This is the goal of increasing a nation's production of goods and services over time. This is usually achieved through the use of fiscal and monetary policies, such as lowering taxes, increasing government spending, and manipulating interest rates.
2. Full employment: This is the goal of having everyone who is willing and able to work employed. This can be achieved through the use of fiscal and monetary policies, such as increasing government spending and reducing taxes.
3. Price stability: This is the goal of ensuring that prices remain stable over time. This is usually achieved through the use of monetary policy, such as manipulating interest rates and increasing the money supply.
4. Equitable distribution of income: This is the goal of ensuring that income is distributed in an equitable manner. This can be achieved through the use of fiscal policy, such as increasing taxes on the wealthy and providing social welfare programs.
5. Balance of payments equilibrium: This is the goal of achieving a balance of payments between a country and its trading partners. This can be achieved through the use of both fiscal.
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What does the doctrine of respondeat superior provide?
Answer:
The Respondeat Superior doctrine is a legal doctrine that establishes a rule for the adjudication of responsibilities in the event of damages or breaches in a situation in which there is a relationship of dependency between a superior and a dependent. Thus, this doctrine establishes that the superior will be responsible for the actions of his dependent, that is, in the event of non-compliance or damage by the latter (provided that said damage or non-compliance occurs in the exercise of their functions) the responsibility will assumed by the superior.
true or false : when you query a database, there is a defined order in which the results are displayed.
It's true that when you query a database, the order in which the results are displayed is fixed.
ORDER BY statement in SQL is used to sort retrieved data in ascending or descending order by one or more columns. By default, ORDER BY sorts data in ascending order. You can use the DESC keyword to sort the data in descending order and the ASC keyword to sort in ascending order.
You can use the ASC and DESC keywords to sort in ascending or descending order respectively. To sort by multiple columns, separate the column names with the (,) operator. You can tell the system to sort the data in a particular order by adding an ORDER BY clause to your SELECT statement. The ORDER BY clause is a list of column names from remote or local tables or views. You can define a sequence of columns in the select statement's column list. Sometimes it is necessary to sort the result set based on specific column values, conditions, etc. You can use the ORDER BY clause in your select statement to sort the results in ascending or descending order.
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Claims for which formal instruments of credit are issued as proof of the debt are _____.
(a) accounts receivable
(b) interest receivable
(c) notes receivable
(d) other receivables.
The correct response is (c), since notes receivable are bills of exchange, official forms of credit, and they can also be endorsed.
What are Receivable Notes?Asset accounts are linked to an underlying promissory note, which specifies in writing the payment terms for a purchase between the "payee" (typically a company, sometimes referred to as a creditor) and the "maker" of the note (typically a customer or employee, sometimes referred to as a debtor). Notes receivable are also known as "notes payable." A company can have notes receivable with any other party, including another company, a financial institution, or an individual. They typically arise when a customer requires longer payment terms than the standard billing terms for a sale. Payees charge interest and require a signed promissory note for legal purposes in exchange for agreeing to a slower payment. Another way that notes receivable are created is through employee cash advances in which the employer requires the employee to sign a promissory note.
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