_____________ is a financial obligation supported by a contract and has a time frame for repayment; it can be associated with a large purchase or a loan when an organization uses some of their assets as collateral.
A) Accounts payable
B) Notes payable
C) Both accounts payable and notes payable
D) None of these is correct.

Question

Quizplus · Accepted Answer

Notes payable is the correct term for a financial obligation that is supported by a contract, has a specific time frame for repayment, and often involves using assets as collateral for large purchases or loans.

_____________ Is a Financial Obligation Supported by a Contract and Has