QUESTION 12 A written promise to pay a certain sum of money to another person or company is an): Note Receivable. O Note Payable O Accounts Receivable. O Accounts Payable. QUESTION 13 Accrued interest on a note payable would: O increase total liabilities. O increase owner's equity. O increase total assets. O None of the above answers correct QUESTION 14 An advantage of a promissory note receivable over an account receivable is that it: O establishes formal proof against the borrower. O has a specified interest rate and maturity date. O collects interest revenue from the borrower. O All of the above answers are correct. QUESTION 15 Failure of maker to pay the maturity value of a note when due is considered a(n): O honored note. O equipment exchange. O default O None of the above. QUESTION 16 In the interest calculation formula, time is expressed: O in months only. O in years only O in years or fraction of a year. in days only QUESTION 17 Interest on a $3.000,5% promissory note for six months is: O $75 O $750. O $0.75 O $7.50