When a note payable is given to settle an existing account payable,

Name: When a note payable is given to settle an existing account payable,
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When a note payable is given to settle an existing account payable, there is no net change in assets, liabilities, or owner's equity because the account payable is simply being converted into a note payable. The liabilities may have changed in terms of their structure, but the total amount of liabilities remains the same.

When a Note Payable Is Given to Settle an Existing