Which of the following defines notes payable?
A) The amount of money due to a business from prior credit sales.
B) Money, such as short-term bank loans or mortgage obligations, that is owed and must be repaid within a year.
C) An accrual accounting term that represents payments in advance of their actual occurrence.
D) Short-term obligations that a business owes to suppliers, vendors, and other creditors.
E) A formal debt instrument that will be paid to the company within a year.

Question

Quizplus · Accepted Answer

Notes payable are a type of debt that a business owes and must repay within a year. This can include short-term bank loans or mortgage obligations.

Which of the Following Defines Notes Payable