The usual difference between accounts payable and notes payable is:
A) Legally enforceable debt.
B) Current-Long-term classification.
C) Known payment terms.
D) Explicitly stated interest.

Question

Quizplus · Accepted Answer

Notes payable often include explicitly stated interest, whereas accounts payable typically do not. Accounts payable arise from purchasing goods or services on credit, and the terms usually don't involve interest unless payment is late. Notes payable are formal loan agreements that specify interest rates.

The Usual Difference Between Accounts Payable and Notes Payable Is