A short-term note payable:
A)Is a written promise to pay a specified amount on a stated future date within one year or the company's operating cycle,whichever is longer.
B)Is a contingent liability.
C)Is an estimated liability.
D)Is not a liability until the due date.
E)Cannot be used to extend the payment period for an account payable.

Question

Quizplus · Accepted Answer

A short-term note payable is a liability that represents a written promise to pay a specified amount on a stated future date, within one year or the company's operating cycle, whichever is longer. It is a form of financing used to borrow money for the short-term needs of the business, and is typically used to finance working capital needs or capital expenditures.

A Short-Term Note Payable