difference between accounts payable and notes payable

In the world of accounting and financial management, broadly, there are two types of liabilities, current and fixed liabilities, also known as short-term and long-term liabilities. 

In this article, we will learn the difference between current liabilities, accounts payable, and notes payable. As you know, liabilities represent money owed by the business, and have different terms of origin, structure, and treatment of financial statements. Understanding the key factors of these liabilities is very crucial for effective financial planning and control.