Accounting

-Liabilities many take many forms. if the owner of a business has to borrow money and promises orally to pay back the obligation, this obligation is known to the borrower as an account payable and to the lender as an account receivable. if the promise made takes the form of a written document, such as an IOU OR a promissory note, then the obligation is known as a note payable to the borrower and a note receivable to the lender. Regardless of the form that the actual obligation takes, its placement in the accounting equation remains the same. Let's assume the following information.