Similar in nature to the short term notes, these notes have higher face values, typically in excess of $50,000 and require an extended application process to be approved by a committee within the bank. The payback periods range from five years to upwards of twenty years. The most common use of this type of a note is to purchase big ticket items or extend or upgrade the facilities where the business is located. The key is that the note’s lifetime is slightly shorter than the life expectancy of the associated asset.
Financial statements serve the purpose of presenting economic activity and status related to a particular date and over a particular time frame. Accountants record monetary transactions and via financial reports present the information in an […]