Which of the Following Is Not a Difference Between Notes

question 118

Multiple Choice

Which of the following is not a difference between notes payable and accounts payable?

• A)Notes payable are not interest free while accounts payable may be interest free.
• B)Notes payable are often outstanding for longer periods of time than accounts payable.
• C)Notes payable are documented using formal written debt contracts while accounts payable are generally informal.
• D)Notes payable are reported as stockholders' equity on the balance sheet while accounts payable are reported as liabilities on the balance sheet.

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Definitions:

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