A Short-Term Note Payable

Multiple Choice

A short-term note payable:

A) Is a contingent liability.
B) 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.
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.