Short-term notes payable are:
A) shown as a reduction to notes receivable on the balance sheet.
B) generally due within six to eight months.
C) shown on the balance sheet with current liabilities.
D) shown on the balance sheet after long-term liabilities.

Question

Quizplus · Accepted Answer

Short-term notes payable are typically due within one year or less and are considered current liabilities on the balance sheet along with other obligations that must be paid within the same timeframe, such as accounts payable and accrued expenses. They are not shown as a reduction to notes receivable and may appear before or after long-term liabilities depending on their specific due date.

Short-Term Notes Payable Are