Which of the Following Correctly Describes Interest Payable

question 16

Multiple Choice

Which of the following correctly describes Interest payable?

• A) Interest payable is shown on the balance sheet as a current liability.
• B) Interest payable is shown on the income statement as an operating expense.
• C) Interest payable is shown on the balance sheet as a current asset.
• D) Interest payable is shown on the balance sheet as a long-term liability.

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Definitions:

Output Increases

A situation where the production level of goods or services in an economy or firm rises.

Scale of Production

Scale of Production refers to the size of operations for manufacturing or producing goods, impacting the costs and efficiency of production.

Average Costs

The total costs divided by the quantity of goods produced, measuring the cost per unit of production.

Industry Exhibits

Industry Exhibits are organized events where companies from a specific industry showcase and demonstrate their latest products, services, and technologies to potential clients, investors, and the public.