Accounting Dictionary - Letter I

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Interest payable
is a liability account that shows an entity's future interest payments for using another entity's money. For example, taking a long in a bank usually means that the borrower will have to repay the principal and interest. When incurred, such interest is shown in the interest payable account until paid. Interest payable can be short-term (current) or long-term (non-current).
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