Are notes payable considered current liabilities?

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1083245

2026-08-15 17:56

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Typically not...

Accounts Payable will be current liabilities, as these relate to purchases that need to be payed back usually within the year unless otherwise specified.

Notes payable usually relate to receiving loans from a bank that will most likely be paid in more than a year, so they will be long term.

Tests should always specify, but if it doesn't say short or long term,

Notes payable is LONG TERM

Accounts payable is SHORT TERM

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