Short-term notes payable typically arise because
A) the firm temporarily requires cash for operations.
B) cash is received from customers prior to the rendering of services or delivery of products.
C) the board of directors have declared a dividend that will be paid at a later date.
D) cash is received as security that will be paid back in the future.

Question

Quizplus · Accepted Answer

Short-term notes payable are often used by firms to meet immediate cash needs for operations, such as covering expenses or purchasing inventory, when there is a temporary cash shortfall.

Short-Term Notes Payable Typically Arise Because