A short-term note payable:
A) Is a contingent liability.
B) Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.
C) Is an estimated liability.
D) Is not a liability until the due date.
E) Cannot be used to extend the payment period for an account payable.

Question

Quizplus · Accepted Answer

A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer. It is a liability that needs to be recorded on the balance sheet.

A Short-Term Note Payable