Which of the following accounts is a liability?
A) Interest Expense
B) Interest Payable
C) Interest Revenue
D) Interest Receivable

Question

Quizplus · Accepted Answer

Liabilities are obligations a company owes to others. Interest payable represents the amount of interest that has been incurred but not yet paid as of the balance sheet date, making it a liability. The other options are either income statement accounts (A and C) or asset accounts (D).

Which of the Following Accounts Is a Liability