Notes payable are often used instead of accounts payable.

Question

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Notes payable are a type of loan agreement where a borrower agrees to repay the principal plus interest to a lender on a specified future date. Accounts payable, on the other hand, refer to money owed by a company to its suppliers or vendors for goods or services purchased on credit. While they are both forms of debt, notes payable tend to involve larger sums of money and longer repayment terms than accounts payable.

Notes Payable Are Often Used Instead of Accounts Payable