In this article I’m going to continue explaining how to use balance sheets. If you missed my previous tutorial check it out here The Balance Sheet.
Before I begin I received a request to better explain the difference between Accounts Payable and Notes Payable.
- Accounts Payable: Short term loans that are normally due in full within a month. This loan doesn’t have interest attached if it is paid on time.
- Notes Payable: Long term loans that require interest payments
You should now understand the difference, but if not leave a comment below.