Interest owed to the bank by MNO Ltd would appear on MNO's balance sheet as:

Question

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The interest owed to the bank by MNO Ltd is an accrued expense, meaning that it has already been incurred by the company but has not yet been paid. As such, it would appear on MNO's balance sheet as an accrual, which is a liability. Option A (accounts payable) refers to amounts owed to suppliers for goods or services purchased on credit, while option C (provisions) refers to amounts set aside for potential future expenses, such as warranties or legal settlements. Option D (contingent liability) refers to potential liabilities that may arise in the future, depending on certain conditions or events.

Interest Owed to the Bank by MNO Ltd Would Appear