promissory

Examples of promissory in the following topics:

• Notes Payable

  • A promissory note is a negotiable instrument, where one party (the maker or issuer) makes, under specific terms, an unconditional promise in writing to pay a determined sum of money to the other (the payee), either at a fixed or determinable future time or on demand by the payee.
  • Demand promissory notes are notes that do not carry a specific maturity date, but are due on demand by the lender.
  • For loans between individuals, writing and signing a promissory note are often instrumental for tax and record keeping purposes .
  • Negotiable promissory notes are used extensively in combination with mortgages in the financing of real estate transactions.
  • A promissory note due in less than a year is reported under current liabilities.

• Components of a Note

  • Notes Receivable represents claims for which formal instruments of credit are issued as evidence of debt, such as a promissory note.
  • Notes Receivable represents claims for which formal instruments of credit are issued as evidence of debt, such as a promissory note.

• Types of Receivables

  • Notes receivable are amounts owed to the company by customers or others who have signed formal promissory notes in acknowledgment of their debts.
  • Promissory notes strengthen a company's legal claim against those who fail to pay as promised.

• Valuing Notes Receivable

  • Notes Receivable represents claims for which formal instruments of credit are issued as evidence of debt, such as a promissory note.