Notes Receivable Asset or Liabilities is an accounting term used to describe a promissory note and related receivables that are treated as assets or liabilities, depending on the terms of the contract. This type of asset or liability includes the principal amount and any earned interest, discounts, or other income derived from the note. It is important for businesses to understand how a note receivable asset or liability affects their cash flow and their financial position, as it can have a significant impact on their bottom line.