If at the end of the year, a company has a short-term note payable outstanding that was entered into earlier in the current year:
A)short-term notes payable and interest payable will appear on the balance sheet and interest expense will appear on the income statement.
B)short-term notes payable will appear on the balance sheet and interest expense and interest payable will appear on the income statement.
C)short-term notes payable will be the only item appearing on the balance sheet.
D)none of the above will occur.

Question

Quizplus · Accepted Answer

Short-term notes payable and interest payable are liabilities and will appear on the balance sheet, while interest expense is recorded on the income statement.

If at the End of the Year, a Company Has