On November 1, 2017, a company signed a promissory note. The interest and princi

Question

On November 1, 2017, a company signed a promissory note. The interest and principal are due on July 1, 2018. What acbounts relating to the note payable will be reported on the financial statements for the fiscal year ending December 31,2017? O A. Short-term notes payable and interest payable will be reported on the balance sheet. O B. Interest receivable will be reported on the balance sheet. O c short-term notes payable will be reported on the balance sheet and interest payable will be reported on the income statement. O D. Short-term notes payable, interest payable and interest expense will be reported on the balance sheet.

Explanation / Answer

Correct answer is A. Short term notes payable and interest payable will be reported on the balancesheet

As Short term notes payable and interest payable are of Liability nature which needs to be repay, Notes payable are generally of short term and shall be reported under the head of current Liabilities.

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