Explain what are Short-Term Notes Payable

January 18th, 2010 Comments off
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Short-term Notes Payable

  • Short-term interest bearing debt which is payable within the year
  • Formal documents showing the amount borrowed(principal) and stating as an annual rate the percentage interest that must be paid
  • Only the principal is recorded on the balance sheet under the title “Notes Payable.”
  • Any interest that the company owes is called interest payable

 

 

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Financial Accounting

 
 

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