9. Interest payable is shown on theOincome statement as an operating expense.Obalance sheet as a long-term liability.Obalance sheet as a current liability.balance sheet as a current asset.

Interest payable is a liability account, shown on a company's balance sheet, which represents the…

Answered: Interest payable is shown on the…

Interest payable is shown on the Oincome statement as an operating exp Obalance sheet as a long-term liability. Obalance sheet as a current liability. Obalance sheet as a current asset.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 16MC: Which of these accounts is a liability? A. Accounts Receivable B. Supplies C. Salaries Expense D....

See similar textbooks

Related questions

Q: When a lessee makes periodic cash payments for a finance lease, which of the following accounts is…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS When a lessee makes periodic cash payments for a…

Q: portion of long-term debt should elect one: a. be reclassified as a current liability. b. be…

A: The liabilities can be classified as current or long term liabilities.

Q: Leasing is often referred to as off-balance-sheet financing because of the way that the transaction…

A: Answer: The correct answer is statement (A).

Q: b.bond payable c.two-year note payable

A: Current liabilities are a company's short-term financial commitments due within a year or during a…

Q: Which of the following will be classified as a current liability? O a. Two-year noțes payable Ob.…

A: Please find the answer to the above question below:

Q: Wages payable is classified as : a. Current asset b. Long term liability c. Fixed asset d. Current…

A: Current Assets: Current assets can be sold in the near future and cash can be generated from the…

Q: A contingent liability is an obligation that depends on the occurrence of a future event and that…

A: A contingent liability means a type of liability which probably occur depending on certain future…

Q: According to IAS 1, what are the classification of liabilities? O Current, noncurrent, estimated and…

A: Answer - According to IAS 1 - Liabilities are basically classified as Current and Non Current…

Q: Which of the following is most likely to be regarded as an estimated liability that is subject to…

A: Solution Concept Estimated liability that is subject to provision It means that the amount…

Q: Which of the following is an accrued liability? * Unearned subscriptions revenue Current portion of…

A: Liabilities that are recorded in the balance sheet are of two types they are - Current liabilities.…

Q: Interest payable is shown on the? A)income statement B)balance sheet as a long term liability…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: . The Lease Liability account should be presented as * O all current liabilities. O deferred…

A: The lease liability is the financial obligation for lease payments recorded at present value for the…

Q: long-term basis at the end of

A: Short-term obligation are those which mature within a period of one year. Long term obligations are…

Q: Briefly describe how the concept of the time value of money is incorporated intothe valuation of…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: contingent liabilities? Which two conditions have to be met in der to report a contingent liability…

A: The foundation for determining investor returns and analyzing a company's financial structure is the…

Q: Define current liabilities and list the typical liability categories included in this…

A: Current liability: Current liability is a debt that the companies need to pay the debts from…

Q: Current liabilities normally are recorded at their: Select one: O a. Expected value. O b. Present…

A: Current liabilities are the financial obligations of the company which are required to be settled…

Q: Current liabilities are obligations whose liquidation is reasonably expected to require the use of…

A: Liabilities: The claims creditors have over the assets or resources of a company are referred to as…

Q: anticipated liability, which may or may not arise in future in known as a Current Liability b.…

A: ⇔Debts or obligations that must be paid within a year are referred to as current liabilities,…

Q: Typically, the estimated amount available for short-term payments in a statement of affairs…

A: Statement of accounts: It is the periodic statements summarizing all the account activity of the…

Q: Which of the following is a charteristic of a current liability

A: Liability: Liability is the obligation of the company to pay which comes from a past activity done…

Q: Potential liabilities that depend on future events arising out of past events are calleda.…

A: Current liabilities: Current liabilities are the liabilities that are payable within a period of…

Q: On the balance sheet, liabilities are generally classified as a. current or long term b. legal or…

A: Current Liabilities Long term liabilities

Q: All of the following are true of known liabilities except: rev: 10_02_2019_QC_CS-184070 Top of…

A: liabilities are considered as legal financial debt or obligation that arises during the course of…

Q: Liabilities are classified on the balance sheet as current or O a. unearned. O b. deferred. O c.…

A: Liability can be defined as the amount owed by the firm to external parties. It is a payable amount…

Q: What is a current liability? Provide some examples of current liabilities.

Q: Short-term obligations can be reported as noncurrent liabilities if the company (a) intends to…

A: There are two conditions in which short term obligations can be reported as non current liabilities…

Q: Which of the following is most likely to be classified and reported as current liability? a. Bond…

A: The liabilities that are payable within one year are classified as current liabilities. It includes…

Q: How would each of the following items be reported on the balance sheet? Item Reported on…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: What are the two types of losses that can become evidentin accounting for long-term contracts? What…

A: The two types of losses that can become evident while accounting for long-term contracts are:(1) A…

Q: Rebate on bills discounted is A liability Actual income Income received in advance An accrued income

A: Statement of financial position or balance sheet is one of a financial statement which helps…

Q: Briefly describe how the concept of the time value of money is incorporated into the valuation of…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Payments on an operating lease will appear: A. In the profit and loss account as an expense B. In…

A: Lease agreement is a type of agreement between two parties, in which one party provides its assets…

Q: Define the following items: Unearned revenue Inventory Notes payable

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Under which of the following categories would Accounts Receivable appear? A. long−term assets…

A: Current assets: Current assets are all those assets that are expected to be sold or used as a result…

Q: Bond discount should be presented in the financial statements of the issue as a(n) Contra liability…

A: >Bond discount is recorded in the books of account as the difference between Face value of Bond…

Q: A deposit received is reported as a * A.liability B.current asset C.investment D.revenue

A: Deposit received means amount of money received from vendors or suppliers as deposit.

Q: amortized debt premium should be reported on the balance sheet of the insurer as a Group of answer…

A: The bonds are issued at premium or discount to face value of bond. The issuer has to pay the premium…

Q: what of the following is the correct calculation for interest cover : a- total debt / interest…

A: Interest coverage ratio is used to find out the ability of a company to pay interest on its debts…

Q: Contingent liabilities must be recorded if: O The future event is probable and the amount owed can…

A: Contingent liability is the liability that occurs which depends on the future event that may or may…

Q: Choose an example of non-current liability. O a. Interest payable O b. Bonds payable Oc. Wages…

A: Following is the answer to the given question

Q: Current liabilities are usually recorded and reported in financial statements at their ful maturity…

A: Financial statements: Financial statements are the final reports of a company, prepared at the end…

Q: Which of the following should be classified as noncurrent liability? Unearned revenue Accrued…

A: >Non current liabilities are the liabilities that are to be repaid in long term, say, after 1…

Concept explainers

Liquidity Risk Exposure

Answer: c

Question

9. Interest payable is shown on the
Oincome statement as an operating expense.
Obalance sheet as a long-term liability.
Obalance sheet as a current liability.
balance sheet as a current asset.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of these accounts is a liability? A. Accounts Receivable B. Supplies C. Salaries Expense D. Accounts Payable
Interest payable is shown on the? A)income statement B)balance sheet as a long term liability C)balance sheet as a current liability D)balance sheet as a current asset
FAST PLZ - Which of the following is a contra-liability account? a. Notes Payable b. Discount on Notes Payable c. Accumulated Amortization d. Taxes Payable
On a classified balance sheet, wages payable is classified as: a.a current liability. b.a long-term liability. c.a current asset. d.a revenue account. e.a general expense.
what of the following is the correct calculation for interest cover : a- total debt / interest payable b- interest payable / total debt c- operating profit / interest payable d- interest payable / operating profit
Which of the following is a contra-liability account? a. Taxes Payable b. Accumulated Amortization c. Discount on Notes Payable d. Notes Payable
16 - Which of the following is the account where the increases are recorded to the receivable side and the decreases to the debit side?A) Asset AccountsB) Passive AccountsC) Accounts ReceivableD) Expense AccountsE) Passive regulating accounts
Prepaid insurance is reported on the balance sheet as a a.long-term liability b.current asset c.current liability d.fixed asset
Accounts payable would appear on the balance sheet as a(n) a. asset b. liability c. unearned revenue d. fixed asset
Under which of the following categories would Accounts Receivable appear? A. long−term assets B. current assets C. long−term liabilities D. current liabilities
How are anticipated administrative expenses reported on a statement of financial affairs?a. As a footnote until actually incurred.b. As a liability with priority.c. As a partially secured liability.d. As an unsecured liability.
Which one of the following statement is TRUE? a. Cash is non-current asset b. Outstanding expenses is a non-current liability c. Accounts receivable is a current liability d. Prepaid expenses is a current asset