Are notes receivable considered assets or liabilities?
Understand the Problem
The question is asking whether notes receivable are classified as assets or liabilities on a balance sheet. This concept is important in accounting as it relates to the financial position of a business.
Answer
Assets
The final answer is that notes receivable are considered assets.
Answer for screen readers
The final answer is that notes receivable are considered assets.
More Information
Notes receivable are expected payments owed to a business, rendering them assets rather than liabilities. They can either be current or noncurrent assets depending on their collection timeline.
Sources
- Notes Receivable Defined: What It Is & Examples - NetSuite - netsuite.com
- Notes Receivable are a(n) (asset/liability). | Chegg.com - chegg.com
- Are Notes Receivable classified as a liability or an asset? - Study - homework.study.com
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