As used in accounting, "notes" may be reported:
A)only as company debt offerings.
B)only as assets on the balance sheet.
C)as either assets or liabilities.
D)on the income statement or the balance sheet.

Question

Quizplus · Accepted Answer

Notes can represent either assets or liabilities depending on the nature of the transaction. As assets, notes can represent loans made by the company to others or interest receivable. As liabilities, notes can represent loans made to the company by others or interest payable. Therefore, notes can be reported on both the balance sheet and income statement depending on their nature.

As Used in Accounting, "Notes" May Be Reported