Accounts Payable is used to record monies due for goods or services purchased on open account. Another Question Go to Table of Contents 7b. Notes Payable is used to record liabilities where an actual note has been signed, such as, to a bank. Another Question Go to Table of Contents 7c. Accrued Expenses are for things used but not yet paid for.
Interest is a charge for using money.
Many times, interest is paid when the note payable is paid but it accrues over time. Another Question Go to Table of Contents 8a. Current Liabilities are things due within one year. A mortgage is a long-term debt, such as, a mortgage on a house. Another Question Go to Table of Contents 8b.