Notes may be issued
A) when assets are purchased
B) to creditor's to temporarily satisfy an account payable created earlier
C) when borrowing money
D) all of the above

Question

Quizplus · Accepted Answer

Notes may be issued in all of the above situations. When assets are purchased, notes are issued to provide the seller with a promise to pay for those assets over time. To satisfy an account payable, notes may be issued as a temporary solution until the debt can be paid in full. Lastly, notes are commonly issued when borrowing money, either from a bank or other financing source.

Notes May Be Issued