Obligations owed by a company to banks, for instance, are called:
A)Notes Receivable.
B)Notes Payable.
C)Accounts Receivable.
D)Accounts Payable.

Question

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Obligations that a company owes to banks are liabilities and are often in the form of loans or credit lines. These are considered notes payable because they are legal obligations to pay back a specific amount of money to the bank.

Obligations Owed by a Company to Banks, for Instance, Are