State the difference between short term note and long term note.

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Answer 1

Question

Chapter 10, Problem 1Q

To determine

State the difference between short term note and long term note.

Expert Solution & Answer

Explanation of Solution

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with the certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Difference between short term note and long term note as follows:

Short-term note mature within one operating cycle or within one year, whichever is higher, but long-term note do not mature within one operating cycle or within one year, whichever is higher.
The short-term note is an example of current liabilities, and a long-term note is an example of long-term liability.

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Answer 2

Question

Chapter 10, Problem 1Q

To determine

State the difference between short term note and long term note.

Expert Solution & Answer

Explanation of Solution

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with the certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Difference between short term note and long term note as follows:

Short-term note mature within one operating cycle or within one year, whichever is higher, but long-term note do not mature within one operating cycle or within one year, whichever is higher.
The short-term note is an example of current liabilities, and a long-term note is an example of long-term liability.

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Answer 3

Question

Chapter 10, Problem 1Q

To determine

State the difference between short term note and long term note.

Expert Solution & Answer

Explanation of Solution

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with the certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Difference between short term note and long term note as follows:

Short-term note mature within one operating cycle or within one year, whichever is higher, but long-term note do not mature within one operating cycle or within one year, whichever is higher.
The short-term note is an example of current liabilities, and a long-term note is an example of long-term liability.

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Answer 4

Question

Chapter 10, Problem 1Q

To determine

State the difference between short term note and long term note.

Expert Solution & Answer

Explanation of Solution

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with the certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Difference between short term note and long term note as follows:

Short-term note mature within one operating cycle or within one year, whichever is higher, but long-term note do not mature within one operating cycle or within one year, whichever is higher.
The short-term note is an example of current liabilities, and a long-term note is an example of long-term liability.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 10, Problem 1Q

To determine

State the difference between short term note and long term note.

Expert Solution & Answer

Explanation of Solution

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with the certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Difference between short term note and long term note as follows:

Short-term note mature within one operating cycle or within one year, whichever is higher, but long-term note do not mature within one operating cycle or within one year, whichever is higher.
The short-term note is an example of current liabilities, and a long-term note is an example of long-term liability.

Answer 6

Chapter 10, Problem 1Q

To determine

State the difference between short term note and long term note.

Expert Solution & Answer

Explanation of Solution

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with the certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Difference between short term note and long term note as follows:

Short-term note mature within one operating cycle or within one year, whichever is higher, but long-term note do not mature within one operating cycle or within one year, whichever is higher.
The short-term note is an example of current liabilities, and a long-term note is an example of long-term liability.

Answer 7

Chapter 10, Problem 1Q

To determine

State the difference between short term note and long term note.

Answer 8

Expert Solution & Answer

Explanation of Solution

Notes payable:

Notes Payable is a written promise to pay a certain amount on a future date, with the certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.

Difference between short term note and long term note as follows:

Short-term note mature within one operating cycle or within one year, whichever is higher, but long-term note do not mature within one operating cycle or within one year, whichever is higher.
The short-term note is an example of current liabilities, and a long-term note is an example of long-term liability.