When a company accrues interest payable on a long-term note at year-end,the interest payable must be shown as a non-current liability on the balance sheet,along with the long-term note payable balance.

Question

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Interest payable is typically classified as a current liability because it is expected to be settled within one year, unlike the long-term note payable which is a non-current liability.

When a Company Accrues Interest Payable on a Long-Term Note