how-are-principal-and-interest-reported-in-the-context-of-a-note-payable

Question

How are principal and interest reported in the context of a note payable?

Accepted Answer

Principal is reported as a liability, and interest is reported as an expense.

Answer

Both principal and interest are reported as liabilities.

Answer

Both principal and interest are reported as expenses.

Answer

Principal is reported as an asset, and interest is reported as a liability.