Accounting Dictionary - Letter I
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).
Don't see the term you are looking for? Try searching our entire website: