If Global Data's income statement for 2009 reports interest expense of $25,200, then:
A) Interest payable decreased by $16,800 in 2009.
B) Interest payable increased by $16,800 in 2009.
C) Interest payable at the end of 2009 amounts to $16,800.
D) Either the amount reported in the income statement or the interest payment shown above must be incorrect.

Question

Quizplus · Accepted Answer

Interest expense is the amount of interest paid during the year. If interest expense increased by $16,800, then interest payable must have also increased by $16,800.

If Global Data's Income Statement for 2009 Reports Interest Expense