Ignatio applied for a loan for his business that he will repay in nine months. The best way to describe this loan is as a(n)
A) account payable.
B) accrued expense.
C) short-term note.
D) long-term note.

Question

Quizplus · Accepted Answer

A loan that is expected to be repaid in less than a year is considered a short-term note. Accounts payable refers to money owed by a business to its creditors for goods or services purchased on credit, while accrued expenses refer to expenses that have been incurred but not yet paid. A long-term note, on the other hand, is a loan that is expected to be repaid in more than a year.

Ignatio Applied for a Loan for His Business That He