Interest Payable Is a Contra Liability Account and Is Deducted

question 59

True/False

Interest payable is a contra liability account and is deducted from the note payable on the balance sheet.

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Definitions:

Soviet Union

A former federal socialist state in northern Eurasia that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).

Resource Market

A market in which households sell and firms buy resources or the services of resources.

Financial Capital

Refers to the funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.