An increase in interest payable during the reporting period indicates that the cash paid for interest exceeded interest expense on the income statement.

Question

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An increase in interest payable during the reporting period indicates that the interest expense on the income statement exceeded the cash paid for interest. This means that the company may have accrued interest expense but not yet paid it, leading to an increase in the interest payable balance on the balance sheet.

An Increase in Interest Payable During the Reporting Period Indicates