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Give advantage of promissory note over an account receivable

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Reference no: EM131537353

Question: 1. What conditions would cause a business to have extra cash to deposit in a bank, yet at another time of year need to borrow extra cash from a bank?

2. What is the advantage of a promissory note over an account receivable?

3. What does interest at 10% mean? How is interest calculated for a fraction of a year?

Reference no: EM131537353

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