Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Find a Job
  • Home
  • Accounting, Taxation, and Reporting
  • Managerial & Financial Accounting & Reporting

Notes Payable (Accounting) - Explained

What are Notes Payable?

Written by Jason Gordon

Updated at April 7th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What are Notes Payable? How to Account for Notes Payable

What are Notes Payable? 

A note payable is a written promissory note. A promissory note is a legal agreement to pay a stated amount. Notes payable contain an interest rate on the amount of principal. 

A note payable may be a a short-term liability on  the balance sheet if it is payable within 12 months or a long-term liability if it is payable in more than 12 months. 

Back to: Accounting & Taxation

How to Account for Notes Payable

The following video provides a detailed explanation of how to record a note payable. 


Related Topics

  • What are Current Liabilities? – Financial Accounting
  • How to Record Accounts Payable (Liability Accounts)? – Financial Accounting
    • Accounts Payable Subsidiary Ledger Definition
    • Accounts Payable Turnover Ratio Definition
  • What are Notes Payable? – Financial Accounting
  • What are Employee Payroll Liabilities? – Financial Accounting
  • Estimated Liabilities (Warranties) – Financial Accounting
  • What are Contingent Liabilities? – Financial Accounting
notes payable note payable

Was this article helpful?

Yes
No

Related Articles

  • Adjusted Balance Method - Explained
  • Fair Market Value (FMV) - Explained
  • Institute of Management Accountants - Explained
  • Adjusted Book Value - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand