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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?
  1. Account payable
  2. Bills of exchange
  3. Prepaid insurance policy
  4. Promissory Note

A
Bills of exchange
B
Promissory Note
C
Prepaid insurance policy
D
Account payable
Solution
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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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