Frequently Asked Questions(FAQ)

Are Notes Payable a debt?

Yes, Notes Payable are a type of debt or loan. They appear under liabilities on the balance sheet and fall into either “Bank Debt” or “Other Long-Term Notes Payable.”

What type of account is Notes Payable?

Notes Payable is a liability account, which contains the amount that a borrower has promised to repay to a lender.

Are Notes Payable a debit or credit normal balance?

Notes Payable is a liability account, which means that the normal balance will be a credit balance.

About the Authors

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

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