Question

Notes receivable:_______.
A. represent an oral promise to pay a fixed amount of principal plus interest on the maturity date
B. are included in a miscellaneous category called other receivables
C. due within 12 months or within the normal operating cycle if the cycle is longer than a year are considered​ long-term assets
D. are supported by a promissory note

Answer 1

Answer:

D. are supported by a promissory note

Explanation:

Notes receivable defines as a written agreement or promise that is to be received in a future date

It is a mix or combination of both the principal and the interest

It is shown in the current asset side of the balance sheet and it contains the  debit balance. Moreover, it is also supported by the promissory note.

Hence the correct option is d.