Which of the following is created by the adjusting entry to recognize interest expense incurred but not yet paid?
A)Prepaid interest
B)Unearned revenue
C)Interest revenue
D)Interest expense
E)Notes payable

Question

Quizplus · Accepted Answer

The adjusting entry to recognize interest expense incurred but not yet paid would increase the Interest Expense account and decrease a liability account such as Interest Payable or Accrued Interest Payable. Prepaid interest, unearned revenue, interest revenue, and notes payable are not related to recognizing interest expense incurred but not yet paid.

Which of the Following Is Created by the Adjusting Entry