On Merf's April 30, Year 1, balance sheet, a note receivable was reported as a noncurrent asset and its accrued interest for eight months was reported as a current asset. Which of the following terms would fit Merf's note receivable.

The answer is: Effects receivable.

Explanation:

Effects receivable. These include accounts receivable or the amounts owed to a business for services already performed.

Current accounts receivable are the amounts receivable within the twelve months following the date of the report, while the non-current effects receivable are those that expire in a term exceeding twelve months from the date of financial report. The receivables are declared at cost less the amortization calculated using the real interest method, less any impairment loss.

The answer is: Effects receivable.

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