is accured interest ( interest payable or interest expense?

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Expert Solution

Accrued interest :-

In accounting, accrued interest refers to the amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation but has not yet been paid out. Accrued interest can either be in the form of accrued interest revenue, for the lender, or accrued interest expense, for the borrower.

The term accrued interest can also refer to the amount of bond interest that has accumulated since the last time a bond interest payment was made.

KEY TAKEAWAYS
Accrued interest is a feature of accrual accounting, and it follows the guidelines of the revenue recognition and matching principles of accounting.
Accrued interest is booked at the end of an accounting period as an adjusting journal entry, which reverses the first day of the following period.

The amount of accrued interest to be recorded is the accumulated interest that has yet to be paid as of the date of accounting period.

These are all the information required to solve the given question.

I hope, all the above mentioned information and explanations are useful and helpful to you.

Thank you.

ekkarill92 answered 1 year ago

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