Which of the Following Correctly Describes the Accounting Treatment for Interest

question 87

Multiple Choice

Which of the following correctly describes the accounting treatment for interest payable?

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

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Definitions:

Reinforcement Schedule

The pattern or timing in which an organism receives a reward or punishment, influencing the speed and strength of behavior learning.

Fixed-interval

A type of schedule in operant conditioning where rewards or punishments (reinforcements) are presented at fixed time periods, provided that the appropriate response is made.

Variable-interval

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, in behavioral psychology.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited only by the second stimulus is eventually elicited by the first stimulus alone.