Question 6 A short-term note payable: Is an estimated liability. Is a contingent liability. Is not a liability until the due date. Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle.whichever is longer. Cannot be used to extend the payment period for an account payable. 2.5 pts

The correct answer is:<br /><br />**"Is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer."**<br /><br />### Explanation:<br />A short-term note payable is a formal, written agreement in which a company promises to pay a specific amount of money (principal) plus interest by a certain date. It is classified as a **current liability** because it is due within one year or the company's operating cycle, whichever is longer. <br /><br />Let’s analyze the other options:<br />1. **Is an estimated liability**: Incorrect. A short-term note payable is not an estimated liability; it is a known and fixed obligation with a specific amount and due date.<br />2. **Is a contingent liability**: Incorrect. A contingent liability depends on uncertain future events, whereas a short-term note payable is a definite obligation.<br />3. **Is not a liability until the due date**: Incorrect. The note becomes a liability as soon as it is issued, not just on the due date.<br />4. **Cannot be used to extend the payment period for an account payable**: Incorrect. Short-term notes payable are often used to replace or extend accounts payable when a formal agreement is needed.<br /><br />Thus, the most accurate description is that it is a written promise to pay a specified amount within one year or the operating cycle.