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LoginWhat Is Accrued Interest?
Adjusting Entries Tutorial Adjusting Entries Interview Questions in Adjusting Entries Tutorial 3 years ago
Accrued interest is the AMOUNT of loan interest that has already occurred, but has not YET been paid to the LENDER by the borrower.
The accrued interest will be reported by the borrower as both
- an EXPENSE on its income statement, and
- a current liability on its balance sheet.
The accrued interest will be reported by the lender as both
- revenue on its income statement, and
- a current asset on its balance sheet.
Accrued interest is likely to require adjusting entries by both the borrower and the lender prior to issuing their financial STATEMENTS.
Accrued interest is the amount of loan interest that has already occurred, but has not yet been paid to the lender by the borrower.
The accrued interest will be reported by the borrower as both
The accrued interest will be reported by the lender as both
Accrued interest is likely to require adjusting entries by both the borrower and the lender prior to issuing their financial statements.
Posted on 20 Feb 2022, this text provides information on Adjusting Entries Tutorial related to Adjusting Entries Interview Questions in Adjusting Entries Tutorial. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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