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Accounts payable represents the amount of money a company owes to its supplier for the purchase of goods or services on credit. The accounts payable account is listed as a current liability because a company must pay its debt in a short period of time.
Notes payable represents a written promissory note that a company receives when it borrows money from a lender. The notes payable account possesses a credit balance.
Yes they are different accounts and Account payable is current liability and Notes payable is long term liability
1. Accounts payable is money owed by a business to its suppliers shown as a liability on a company's balance sheet for the purchase of goods or services whereas Notes Payable is a general ledger account in which a company records the face amounts of the promissory notes that it has issued for borrowing from a lender.
2. Account payable are not created by formal legal instrument documents whereas notes payable are created by these formal legal instrument.
3. Account payables do not depend on promise but rather on terms of credit facilities the supplier will provide to the company whereas notes payable are based on promissory notes.
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