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Current Liabilities

Which of the ...

Question

Which of the following is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date?

A

Account payable

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B

Bills of exchange

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C

Promissory Note

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D

Prepaid insurance policy

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Solution

The correct option is D Promissory Note
Promissory Note is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date

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