Home › Forums › Debt Management › Does a decrease in notes payable mean more or less debt on the balance sheet? › Re: Does a decrease in notes payable mean more or less debt on the balance sheet?
Notes Payable is a liability, usually a short term liability but can be long term. A company cannot sell Notes Payable because it is not an asset, you are mistaken about that. Paying off the note will reduce notes payable and lower the amount of debt.
I like the way you asked this question. It is obvious that you’ve thought about it, you just aren’t trying to get out of doing your homework. Good luck.