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What is the difference between notes payable and bonds payable?

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Answered 2009-07-26 22:07:03

Notes payable are written agreements between a lender and a borrower - essentially a loan. Bonds payable also are, in essence, a loan. However, bonds are issued as many "coupons," thus broadening the potential investor (lender) pool. If a business needs, for example, $500,000 to fund an enterprise, it can generally obtain a loan in the form of a note payable. If a business needs $10,000,000 to fund an enterprise, it may more easily raise capital through issuing, say, 1,000 coupon bonds at $10,000 face value each instead of asking for a $10 million loan. Both notes and bonds may be traded on the financial markets, thus they are treated quite similarly for accounting purposes.

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What is the difference between notes payable and trade payable?

The difference between trades payable and notes payable is based on the relationship with the business to which money is owed to. Trades payable is typically with a business' supplier while notes payable is usually with a bank. Their treatment in the cashflow statements also differs. With trades payable, the transaction is reported in the CFO (Cash flow from Operations) while notes payable under US GAAP is reported under CFF (Cash flow from financing).

What is the difference between bills payable and notes payable?

Bill or notes payable both are same things with different names and can be used interchangably to refer to one same thing.

What is the difference between notes payable and accounts payable?

A note payable is a tangible note between you and another company that you will pay them back for a good or service they sold you. An account Payable is an allocation base for all of your notes payable. so for example i could have a note payable to company A for $100, Company B for $500, and Company C for $300, and my accounts payable would be $900

Bonds are a form of interest-bearing notes payable?


What is the difference between accounts payable and notes payable?

Accounts payable refers to liabilities owed to creditors from whom you've made a purchase. Notes payable refer to liabilities owed to investors from whom you've borrowed money by issuing a debt security.

What is the Notes payable journal entry?

Debit accounts payableCredit notes payable

What is the difference between a bank loan and notes payable?

I think a bank loan is when money is borrowed from a bank with the expectation that it will be repaid, and notes payable is then the accumulation of all loan amounts expected to be repaid according to each note (the legal document with the stipulations).

What is the journal entry for accrued interest expense on Notes Payable?

debit interest expense, credit interest payable for the accrued amount

Journal entry to record the conversion of an 250 accounts payable to a notes payable?

debit accounts payable 250credit notes payable 250

Discount on Notes Payable is a contra account to Notes Payable on the balance sheet?


What is notes payable?

The phrase notes payable is a result of a purchase made by a business and is a form of receipt.

What is the journal entry for paid notes payable?

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How do you record journal entry to increase notes payable?

debit cashcredit notes payable

Is increase in long terms bonds payable an inflow or and outflow?

Increase in long term notes payable is cash inflow as business has acquired more cash from issuing long term loan.

What are maturities?

Maturities of debt instruments, such as bonds, loans, or notes payable, are the amounts of time outstanding before the debt becomes due.

When are the notes payable for Big Lots?

fo Big lots have any notes payable for the year 2012.

To increase note payable is debit or credit?

Notes payable has credit balance as normal balance so credit will increase the notes payable balance.

What are Accounts Payable and Notes Payable?

Accounts payable are the amounts owed to a supplier that the buyer holds an account with. Notes payable is the amount owed to creditors, that is, suppliers that the buyer does not hold an account with.

What is the difference between interest and a dividend?

Interest is a payment on debt (such as bonds or bank notes). A dividend is a distribution of earnings to the owners of a firm.

What is the journal entry for issued a note payable?

debit accounts payablecredit notes payable

Is notes payable an asset?


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Notes Payable - I hope that wasn't for an exam.

Is there a difference between a piano notes and guitar notes?

There is a difference between piano notes and guitar notes. These notes are played on very different instruments producing very different sounds.

What statement does the notes payable go on?

Notes payable is same like accounts payable a liability of business and it is shown under current liability section of balance sheet.

What are the differences between account payable and note payable?

Account payable is created when goods purchased on credit from vendors but if note is issued to vendor until maturity date to be used to fulfil needs then that note is called notes payable.