Which of the following statements regarding notes receivable is NOT correct?

Multiple Choice

The interest rate is always stated as a monthly percentage if the note is for less than a year.

A note receivable is created when a formal written contract $("$note$")$ is established outlining the terms by which a company will receive amounts it is owed.

Notes receivable are viewed as a stronger legal clain than trade receivables.

Rather than record the interest earned as each day passes, companies wait until an interest payment is received or the end of the acrountina nerind is reached