Promissory Note Definition – What is Promissory Note?

Accounting Glossary 

Promissory note definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. Promissory note can be defined as: Written promise to pay a specified amount either on demand or at a definite future date; is a note receivable for lender but a note payable for the lendee. A promissory note can take many forms but it is usually has a longer time period then the standard terms related to accounts payable. Form this reason, in part, a promissory note will generally be in writing and will include interest for the time value of money.