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:

Motivated

Having the desire and willingness to achieve something, often driven by internal or external factors that inspire action.

Co-Workers

Individuals who work together in the same organization or on the same team, but not necessarily in the same role or position.

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their social position.

PJ Fit

The compatibility between an individual's personality and job, which can influence job satisfaction and performance.