Asked by
Ashley Boyer
on Nov 14, 2024Verified
Which of the following statements is false?
A) Notes payable usually require the borrower to pay interest.
B) Notes payable are sometimes used instead of accounts payable.
C) Most notes and bank loans are non-interest bearing.
D) Notes payable reflect a promise to repay a specified amount of money either at a fixed future date or on demand.
Notes Payable
Financial obligations represented by written promissory notes requiring the borrower to repay the amount borrowed plus interest.
Accounts Payable
Liabilities or money owed by a business to its creditors or suppliers for goods and services received.
Non-interest Bearing
Refers to debt or a financial instrument that does not accrue interest over time, meaning the borrower only repays the principal amount.
- Distinguish between different types of liabilities and understand their classification as current or non-current.
Verified Answer
DO
Learning Objectives
- Distinguish between different types of liabilities and understand their classification as current or non-current.