What type of account represents a written promise to pay a creditor a certain amount in the future?

A notes payable account is a written promise to pay a creditor a specific amount at a future date. This account typically arises when a business borrows money or takes out a loan with formal documentation involved, which includes terms regarding the payment schedule and interest rate.

Notes payable can also be used in various business transactions, such as the purchase of assets or in situations where a business engages in financing arrangements. The defining characteristic of notes payable is the formal nature of the promise to pay, which distinguishes it from other types of obligations, such as accounts payable, which typically do not involve a formal written agreement and result from regular operational purchases.

Bonds payable refers to a formalized debt security issued by a company, representing a larger borrowing that is usually paid back over a longer term with periodic interest payments, which doesn’t fit the description of a simple written promise as required by the question. Accounts payable represents amounts owed to suppliers for goods and services received and is usually settled within a short period, while accrued liabilities capture expenses that have been incurred but not yet paid, lacking the formal promise aspect.