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    acarl's Avatar
    acarl Posts: 1, Reputation: 1
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    #1

    Jan 28, 2010, 02:06 PM
    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.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    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.
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