Long-Term Notes Payable
A long term liability, which means that the debt does not need to be repaid during the upcoming 12 months. It can also be the portion of a note payable to be paid after one year.
Notes payable almost always require interest payments. The interest owed for the period the debt has been outstanding that has not been paid must be accrued. Accruing interest creates an expense and a liability. A different liability account is used for interest payable so it can be separately identified.
Balance Sheet Analysis
Learn how to analyze a balance sheet in terms of company's liquidity and solvency using financial ratios such as the current ratio, quick (or acid) ratio, debt to asset ratio and debt to equity ratio.
Return from Long-Term Notes Payable to Sample Balance SheetReturn from Long-Term Notes Payable to Small Business Accounting
