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 will appear on the balance sheet and interest payable will appear on the income statement.
B) short-term notes payable will be included in the notes to the financial statements.
C) short-term notes payable and interest payable will appear on the balance sheet.
D) short-term notes payable, interest payable and interest expense will appear on the balance sheet.

Question

Quizplus · Accepted Answer

Short-term notes payable and interest payable are both liabilities and will appear on the balance sheet. Interest expense, however, will appear on the income statement.

If at the End of the Year, a Company Has