When interest is accrued on a note payable,but not paid,the
A)Interest Expense account is increased;the Interest Payable account is increased.
B)Interest Expense account is decreased;the Interest Payable account is increased.
C)Notes Payable account is increased;the Interest Payable account is increased.
D)Interest Expense account is increased;the Interest Payable account is decreased.

Question

Quizplus · Accepted Answer

Interest is accrued by increasing a liability account (Interest Payable)and recording the cost of interest as an expense (Interest Expense).

When Interest Is Accrued on a Note Payable,but Not Paid,the