When a corporation issues a promissory note to a lender, it signs a written agreement stating a promise to repay the money, along with interest, at a future date. The obligation to repay the debt will ...

Learn what a contra liability account is, how it functions in financial accounting, and explore examples of this essential component in balancing liabilities.

Notes payable is accounting-speak for promissory notes, written commitments that say you've borrowed money and have to pay it back. Like other outstanding debts, notes payable affect your bottom line.