A note payable can be used to extend the payment due on an account payable.

Question

Quizplus · Accepted Answer

A note payable is a written agreement between a borrower and a lender that details the terms and conditions of the loan, including the repayment schedule. It can be used to extend or delay the payment due on an account payable, which is a debt owed to a supplier or vendor for goods or services purchased on credit. By converting an account payable into a note payable, a business can negotiate more favorable repayment terms and potentially improve its cash flow.

A Note Payable Can Be Used to Extend the Payment