A note payable can either be classified as a long-term liability or a short-term liability,depending on the discretion of the accountant.

Question

Quizplus · Accepted Answer

The classification of a note payable as long-term or short-term is based on its maturity date, not the discretion of the accountant. If it is due within one year, it is classified as short-term; if due after one year, it is classified as long-term.

A Note Payable Can Either Be Classified as a Long-Term