A note payable may require the borrower to accrue interest expense and interest payable at the end of the accounting period.

Name: A note payable may require the borrower to accrue interest expense and interest payable at the end of the accounting period.
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A note payable often involves interest, which must be recorded as an expense and a liability (interest payable) at the end of the accounting period if it has not yet been paid.

A Note Payable May Require the Borrower to Accrue Interest