What is a written balance promissory note referred to as?

A written balance promissory note is referred to as notes receivable. This term is used in accounting to describe a promise made by one party to pay a certain amount of money to another party at a specified future date. In essence, when the promise is documented in writing, it becomes a formal financial instrument, evidencing a loan or credit extension.

In the context of financial transactions, notes receivable represent assets on the balance sheet of the lender (the one who holds the note), as it indicates a future inflow of cash. The lender expects to receive payment according to the terms outlined in the promissory note.

Understanding this terminology is crucial for managing financial documents and transactions effectively within a business or institutional setting. It highlights the relationship between lenders and borrowers and reflects how funds are managed over time. The other options relate to different financial concepts: notes payable signifies what a company owes rather than what it is owed, while accounts payable and accounts receivable deal with trade credit and services rendered, respectively.