An adjustment to interest from a note payable, incurred during the period, but not paid or recorded, is called:
A) Notes Payable.
B) Accrued Interest Income.
C) Accrued Interest Expense.
D) Discount Payable Liability.

Question

Quizplus · Accepted Answer

Accrued Interest Expense represents interest that has been incurred during a specific period but has not yet been paid or recorded in the company's accounts. This adjustment is necessary to recognize the expense in the period it was incurred, adhering to the matching principle of accounting.

An Adjustment to Interest from a Note Payable, Incurred During