Accountancy, asked by choughule27, 5 months ago

the unpaid interest on loan​

Answers

Answered by tmahak5
10

Answer:

A deferred interest loan postpones interest payment till after a certain period of time........ Mortgages can also include deferred interest options, in which the unpaid interest is added to the principal interest of loan, also known as nagetive as amortization.

Answered by steffiaspinno
0

The unpaid interest on the loan is the liability of the company.

Liability means it is owed to someone. If interest remains unpaid for less than one year it is known as a current liability. Otherwise is referred to as a noncurrent liability. Unpaid interest is shown on the liability side of the balance sheet of the firm. Interest becomes outstanding when it is not paid on the due date. interest is an expense of the company.

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