Which of the following accounts is used to record an accrual for expenses?
A)Prepaid rent.
B)Unearned revenues.
C)Accounts receivable.
D)Interest payable.

Question

Quizplus · Accepted Answer

Interest payable is an account used to record an accrual for expenses. Accrual accounting requires that expenses be recognized when they are incurred, regardless of whether or not payment has been made. Interest payable represents the interest expense that has been incurred but has not yet been paid. The other options do not relate to accruals for expenses, but rather to payments received (unearned revenues), payments made in advance (prepaid rent), or money owed to the business (accounts receivable).

Which of the Following Accounts Is Used to Record an Accrual