Explain the diff erence between notes receivable and notes payable.

Answers

  • Réponse publiée par: HaHannah
    NOTES RECEIVABLE AND NOTES PAYABLEWhat is notes receivable?This account is one of an account in a balance sheet usually this is included in the current assets section if it can be receive less than one year.The money is made up of an interest and principal.This is a written promise to receive money at specified date and time.

    Example:

    The notes receivable happen when one business, usually a bank, borrow or makes a loan to another business. Notes receivable  income is recorded at the income statement as interest income.

    What is notes payable?This is a liability accountThe promise of the borrower to pay it's obligation is recordedA notes payable is consists of principal amount, due date and the interest to be paid.

    Example:

    If one company will borrow money to the other company such as bank, the bank will require the borrower to sign a formal loan agreement before they will release the money. The company will record the loan in its general ledger account as notes payable.

    Notes payable read more on:

    What is the difference between account receivable and account payable read more on:

  • Réponse publiée par: taekookislifeu
    B. decreasing equity

    Explanation:

    In accounting, interest expense is the amount of money paid due to the interest of a borrowed resource (usually, money). As this is categorized as an expense, it will decrease the equity due to outflow of money. This will decrease the cash in assets and in effect, will also decrease the equity of the business.

    #answerForTrees

  • Réponse publiée par: Jelanny

    The political ideology of the power-holders always conditions the economic system. The economic system has to work in the environment generated by political relations. Economics has to closely follow political relations, goals and policies which are studied by Political Science.

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Explain the diff erence between notes receivable and notes payable....