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

Question

Quizplus · Accepted Answer

Interest payable is a current liability because it is due within the next operating cycle or year, regardless of the term of the associated note payable.

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