Accounts payable and notes payable are reported on the balance sheet at net realizable value.

Question

Quizplus · Accepted Answer

Accounts payable and notes payable are reported on the balance sheet at their full face value, not at net realizable value. Net realizable value refers to the amount a company expects to receive from the sale of an asset or the settlement of a liability, after deducting any associated selling costs or other expenses.

Accounts Payable and Notes Payable Are Reported on the Balance