For each transaction select the letter of the type of adjustment that would be required.
-Interest is incurred on money borrowed from the bank, but not yet paid
A)Deferred expense
B)Deferred revenue
C)Accrued liability
D)Accrued asset

Question

Quizplus · Accepted Answer

When interest is incurred on money borrowed from the bank, but not yet paid, it represents a liability that has accrued but has not yet been paid. Therefore, the type of adjustment required is an accrued liability.

For Each Transaction Select the Letter of the Type of Adjustment