acarl
Jan 28, 2010, 02:06 PM
I'm doing my balance sheet and I am supposed to calculate the Interest Payable off my short term liabilities. I am having a brain fart and can't remember if Salaries Payable has interest or not.
ArcSine
Jan 28, 2010, 03:53 PM
Salaries payable... no. Interest accrues ONLY on interest-bearing debt, meaning those obligations governed by an agreement which explicitly calls for interest. A short-term bank loan would be an example.
So you'll need to go through your current debt and take 'em case-by-case. Accounts Payable is another one which isn't interest-bearing, except in rare situations.