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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