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Place the number corresponding to each of the following characteristics in the appropriate section of the diagram. If a characteristic applies to both Accounts Receivable and Notes Receivable, place that number in the overlapping section.
1. Is shown as an asset on the balance sheet.
2. Provides a strong legal claim in the sense that it is a written promise to pay a specific amount at a specific point in time.
3. Is considered to be a trade receivable.
4. Is usually the most significant type of claim held by a company.
5. Can be sold to a third party Accounts Notes Receivable.
6. Its interest accrues from the first day of the receivable.
7. Is usually due within 30 days.
8. Is shown at its net realizable value.
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