Provide an explanation for each of the follow asset accounts
Account Name Explanation
Accounts Receivable
Prepaid Expense
Notes Receivable
What will be an ideal response
Account Name Explanation
Accounts Receivable A customer's promise to pay in the future for services or goods sold. Often described as "On Account."
Prepaid Expense A payment of an expense in advance. It is considered an asset because the prepayment provides a benefit in the future.
Notes Receivable A written promise that a customer will pay a fixed amount of money and interest by a certain date in the future. Often more formal than an Accounts Receivable.
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A salesperson owns 25% of the outstanding shares of Rollo Realty, Inc., and the broker owns the remaining shares. This division of ownership is
a. acceptable. b. mandated. c. discouraged. d. prohibited
If a surgeon makes a mistake—he removes one patient's left leg when he was to remove the patient's tonsils—that surgeon will likely face an action for:
A) strict liability. B) medical malpractice. C) breach of liability. D) intentional tort.