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Hi I was wondering what types of accounts are bank interest payable, bank interest receivable, tax payable. Are they SOFP accounts or SOPL accounts? Quite a lot of questions mention these accounts and it’s very confusing to tell if they are assets/liabilities or expenses/income
I am afraid it really depends on the context.
Strictly speaking anything listed as ‘payable’ is a liability in the SOFP and anything listed as ‘receivable’ is an asset in the SOFP.
However it certainly can be confusing because ‘interest payable’ is often used to mean the total interest expense (and the same for the others).
So again, it really depends on the wording of the question.
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