Short-term notes payable:
A) Can replace an account payable.
B) Usually represent money borrowed from a bank.
C) Are usually interest bearing.
D) Are recorded as current liabilities.
E) All of these answers are correct.

Question

Quizplus · Accepted Answer

Short-term notes payable are a type of borrowing from a bank or financial institution that are used to finance short-term expenses. They are typically recorded as current liabilities on the balance sheet and can replace an account payable. Additionally, they usually carry an interest rate which makes them interest-bearing. Therefore, all of the answer choices are correct.

Short-Term Notes Payable