Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

In the context of notes receivable, the borrower of the note is called:

the endorser

the maker

the payee

the drawer

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Verified step by step guidance

Understand the concept of notes receivable: A note receivable is a written promise by a borrower to pay a specific amount of money at a future date, often with interest.

Identify the parties involved in a note receivable: The key parties are the maker (borrower), the payee (lender), and sometimes an endorser (if the note is transferred).

Clarify the role of the maker: The maker is the individual or entity that creates and signs the note, promising to pay the amount specified. This is the borrower of the note.

Differentiate the other terms: The payee is the party to whom the payment is promised (the lender). The endorser is someone who transfers the note to another party, and the drawer is a term more commonly associated with checks, not notes receivable.

Conclude that in the context of notes receivable, the borrower is referred to as the maker, based on the definition and roles of the parties involved.