A Short-Term Note Payable

question 131

Multiple Choice

A short-term note payable:

• A) Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.
• B) Is a contingent liability.
• C) Is an estimated liability.
• D) Is not a liability until the due date.
• E) Cannot be used to extend the payment period for an account payable.

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified between 0 (impossible) and 1 (certain).

Adopted Pet

Refers to an animal that has been taken into a home from a shelter or rescue organization to be a family pet.

Female

Referring to the sex of an organism or individual having characteristics associated biologically and genetically with females, often in contrast to males.

Male

Refers to the biological sex that produces small, mobile gametes, typically associated with XY chromosomes in many species.