Notes receivable are similar to accounts receivable, but with shorter maturities. True or false?

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Notes receivable are similar to accounts receivable, but with shorter maturities. True or false?

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Answer 1

Answer #1

False

.

The origin of accounts receivable is always the sale of goods or service on account, whereas notes receivable can take place due to loans and advances, sales on account or service on account etc.

Accounts receivable and notes receivable can have more or less same maturity period. The notes receivable is documented where there is a specific date for payment while accounts receivable do not have a specific date for recovery or maturity.

Generally notes receivable are attached with a interest but there is no interest on accounts receivable.

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Answer 2

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Notes receivable are similar to accounts receivable, but with shorter maturities. True or false?

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