Notes receivable is the account that tallies up money a company will be paid in the future.
The notes receivable that a company has that will be paid in a year or less are current assets. If a company has a $10,000 three month notes receivable it will receive $10,000 in three months. If a company has a three year note receivable, it will get its money in three years and the note would be considered a long term asset. In a bankruptcy case creditors with a written note, whether it is long term asset or a current asset will take precedence over creditors with just an account receivable.