Question 19 **Short-term notes payable:****Multiple Choice**1. Are normally categorized as noncurrent liabilities.2. Are a conditional promise to pay.3. Cannot replace an account payable.4. Rarely involve interest charges.5. **Can be issued in return for money borrowed from a bank.** (Correct Answer)Explanation:Short-term notes payable are financial obligations that a company needs to pay back within a year. They are often issued in exchange for money borrowed from a bank. Unlike long-term notes, they are classified as current liabilities on the balance sheet and typically involve a promise to repay the borrowed amount with interest within a specified short-term period.

Short-term notes payable is a negotiable instrument and it is classified as a current liabilities.…

Short-term notes payable: Multiple Choice O O O O Are normally categorized as noncurrent liabilities. Are a conditional promise to pay. Cannot replace an account payable. Rarely involve interest charges. Can be issued in return for money borrowed from a bank.

Short-term notes payable: Multiple Choice O O O O Are normally categorized as noncurrent liabilities. Are a conditional promise to pay. Cannot replace an account payable. Rarely involve interest charges. Can be issued in return for money borrowed from a bank.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Question 19

**Short-term notes payable:**

**Multiple Choice**

1. Are normally categorized as noncurrent liabilities.
2. Are a conditional promise to pay.
3. Cannot replace an account payable.
4. Rarely involve interest charges.
5. **Can be issued in return for money borrowed from a bank.** (Correct Answer)

Explanation:
Short-term notes payable are financial obligations that a company needs to pay back within a year. They are often issued in exchange for money borrowed from a bank. Unlike long-term notes, they are classified as current liabilities on the balance sheet and typically involve a promise to repay the borrowed amount with interest within a specified short-term period.

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