Asked by Akadiri Olalekan on Apr 26, 2024
Verified
Notes payable may be issued to creditors to satisfy previously created accounts payable.
Notes Payable
Short-term or long-term liabilities representing amounts owed by a business, documented by a formal promissory note.
Accounts Payable
Liabilities owed by a business to its suppliers or creditors for goods and services purchased on credit.
- Outline the methodology and accounting practices for notes payable, detailing both the issuance and fulfillment of financial liabilities.
Verified Answer
SS
Sharanpreet SinghApr 28, 2024
Final Answer :
True
Explanation :
Notes payable can be issued to settle outstanding accounts payable, making it a true statement.
Learning Objectives
- Outline the methodology and accounting practices for notes payable, detailing both the issuance and fulfillment of financial liabilities.