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:

Degenerative Disease

A condition marked by progressive deterioration of tissues or organs, often leading to loss of function.

Amyotrophic Lateral Sclerosis

A progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord, leading to muscle weakness and atrophy.

Guillain-Barré Syndrome

A rare neurological disorder where the body's immune system mistakenly attacks part of its peripheral nervous system, often leading to weakness and tingling in the extremities initially.

Stroke

A condition that occurs when the blood supply to the brain is impaired. It may cause temporary or permanent damage.