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Shortly after going to bed and as you are falling asleep, you experience the vividly realistic sensation that you are falling ortripping forward, which jolts you awake. This vivid sensationis a common example of:
Interest Payable
A liability account showing the amount of interest expense that has been incurred but not yet paid as of the balance sheet date.
Effective Interest Method
A technique used in accounting to allocate interest expense or income over the life of a financial instrument at a constant interest rate.
Semiannually
Occurring twice a year, typically every six months.
Discount Amortized
The process of gradually reducing the discount on bonds payable over the life of the bonds as an interest expense.
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