Interest expense for the period was $7,250 less than cash payments for interest.This difference is most likely due to a(n):

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If interest expense for the period was $7,250 less than cash payments for interest, it means that the company paid more interest than what was recognized as an expense. This could happen if there was a decrease in the interest payable account, meaning that the company had previously accrued more interest expense than what was actually owed and paid during the period. Therefore, option B is the most likely choice. Option A (increase in the interest payable account) would result in the opposite effect, where interest expense would be higher than cash payments. Options C and D involve interest receivable, which is not relevant to the scenario as interest expense and interest payable relate to the company's own borrowing and repayment activities, not to interest earned on investments.

Interest Expense for the Period Was $7,250 Less Than Cash