Differentiate among accounts payable, notes payable, and accrued expenses.
QUESTION: (100 Words)Differentiate among accounts payable, notes payable, and accrued expenses.JEROMEâs Answer: (70 Words)Accounts payable is money owed to a company for their product and services, Notes payable arepromissory notes that is provided to a Leander for a company if the company needs to borrowmoney, and accured expenses is money that the company puts out in order for it to stay inbusienss. Usually when a company starts a business they normally have to take out a loan fromthe bank that would be considered a promissory note, then in order for a company to operate itwill need to by supplies and pay employees that would be considered as accrued expenses, thenwhen a company owes money to another company such as shipping charges then that would beconsidered accounts payable.CLARENCEâs Answer: (70 Words)The differentiate among accounts payable, notes payable, and accrued expenses are as follows:1.The accounts payable are accounts that owed to the company for their goods andservices.2.The notes payable are recorded obligations in the form of written promissory notes.These note ore often used instead of accounts payable.3.The accrued expenses are expenses that the company does not pay at the time they areaccrued such as wages, taxes, and interests. The company will record accrued expenses ofthe balance sheet to be pay in the near future.
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