Which of the following occurs when a company records accrued interest expense on a note payable?
A)Interest Expense is credited.
B)Note Payable is credited.
C)Cash is debited.
D)Interest Payable is credited.

Question

Quizplus · Accepted Answer

When a company records accrued interest expense on a note payable, it means that the company recognizes interest expense that has been incurred but not yet paid. Therefore, the company should credit the Interest Payable account to reflect the liability for the interest that has accrued but not yet paid.

Which of the Following Occurs When a Company Records Accrued