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.

---

Definitions:

Sale

The exchange of goods or services for money, forming the basis of revenue for most businesses.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically entailing fixed interest payments and principal repayment upon maturity.