Which of the following correctly describes the accounting treatment for interest payable?

Which of the following correctly describes the accounting treatment for interest​ payable? A. It is shown on the balance sheet as a current liability. B. It is shown on the balance sheet as a​ long-term liability. C. It is shown on the income statement as an operating expense. D. It is shown on the balance sheet as a current asset.

Answer

A. It is shown on the balance sheet as a current liability.

Interest payable is the amount of interest the company has incurred but has not yet paid as of the date of the balance sheet.

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