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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

B

Bills of exchange

C

Promissory Note

D

Prepaid insurance policy

Medium

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Solution

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Correct option is C)

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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