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-   -   Can you accumulate interest off salaries payable? (https://www.askmehelpdesk.com/showthread.php?t=440331)

  • Jan 28, 2010, 02:06 PM
    acarl
    Can you accumulate interest off salaries payable?
    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.
  • Jan 28, 2010, 03:53 PM
    ArcSine
    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.

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