Interest Payable on a Loan Becomes a Liability

question 175

Multiple Choice

Interest payable on a loan becomes a liability:

• A) When the borrowed money is received.
• B) When the note payable is issued.
• C) At the maturity date.
• D) As it accrues.

---

Definitions:

Renal Tubule

A tiny tube in the kidney where reabsorption of water, ions, and nutrients occurs, and waste products are secreted.

Capsular Space

The cavity or space between the inner and outer layers of a capsule, often referring to the space within the capsule of the glomerulus in the kidney.

Basement Membrane

A thin, fibrous, extracellular matrix of tissue that separates the lining of an internal or external body surface from underlying connective tissue.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.