In the Statement of Financial Position, the Account Interest Payable

question 309

Multiple Choice

In the statement of financial position, the account Interest Payable is

• A) added to bonds payable.
• B) deducted from bonds payable.
• C) classified as a current liability.
• D) classified as a revenue account.

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Definitions:

Primary

Relating to the first or earliest stage, level, or period; often signifies something that is of most importance.

Secondary

Pertains to the second level or stage in a sequence, often referring to education that follows primary or elementary education.

Capitalist Economy

An economic system based on private ownership of the means of production and the creation of goods or services for profit.

Regulation

The establishment of rules by government or other authorities to control or govern conduct within a specific area.