Question: When an entity borrows money, it may sign a written promise to repay. Such a written promise is termed a note . For example, if

When an entity borrows money, it may sign a written promise to repay.

Such a written promise is termed a note . For example, if Business A borrows money from Business B, signing a note, Business A will record a [note receivable / note payable] on its balance sheet, and Business B will record a [note receivable / note payable].

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