Question

In accounting accrued intetest for a loan obtained by a business will?

Answer 1

Accrued interest is reported on the income statement as a revenue or expense, depending on whether the company is lending or borrowing. In addition, the portion of revenue or expense yet to be paid or collected is reported on the balance sheet, as an asset or liability.

Answer 2

Accrued interest is reported on the income statement as a revenue or expense, depending on whether the company is lending or borrowing.

Because accrued interest is expected to be received or paid within one year, it is often classified as a current asset or current liability

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