Accrued interest on a note payable would have which effect on the categories?
A)Total liabilities would be increased.
B)Total assets would be increased.
C)Owner's equity would be increased.
D)None of these answers are correct.

Question

Quizplus · Accepted Answer

Accrued interest on a note payable represents an obligation to pay additional money in the future, which increases the total amount of liabilities owed by the company.

Accrued Interest on a Note Payable Would Have Which Effect