Which of the following best describes notes payable?

Notes payable refers to written promissory notes where one party agrees to pay a specified amount of money to another party at a future date. These are typically categorized as short-term liabilities, meaning they are payments that are due within a year. In this context, they represent outstanding short-term loans that a business has taken on, and the company is obligated to repay them on or before their maturity date. This categorization aligns perfectly with how notes payable function in a business's financial statements and its cash flow management.

The other options provided do not accurately capture the essence of notes payable. Long-term investments pertain to assets the company intends to hold for more than a year, which does not include notes payable. Accrued liabilities are expenses that have been incurred but not yet paid, which are distinct from notes payable that are formalized loans. Deferred revenue pertains to money received before services are performed or goods are delivered, representing a liability at that point but also different from the nature of notes payable.