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Short-term notes payable: Select one: a. Can replace an account payable. b. Can be issued in...

Question:

Short-term notes payable:

Select one:

a. Can replace an account payable.

b. Can be issued in return for money borrowed from a bank.

c. Are negotiable.

d. Are an unconditional promise to pay.

e. All of these.

Notes Payable

Notes Payable is a debt instrument issued by the buyer (debtor) to its supplier (creditor) for the amount of goods delivered or to the amount of service performed by the latter. Moreover, written on the face of the note is the amount owed and the credit terms including the interest rate.

Answer and Explanation:

Answer: e. all of these

The answer is option E as the aforementioned choices do happen in business world when it comes to the issuance of notes.


Learn more about this topic:

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Accounting for Non-Interest & Interest-Bearing Notes

from Accounting 202: Intermediate Accounting II

Chapter 4 / Lesson 7
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