Which of the following is treated as an asset?
a. Interest received in advance
b. Accrued interest
c. Outstanding interest
d. Interest received
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Answer- b. Accrued interest
Interest received in advance is a liability
Outstanding interest is interest we have to pay and not paid yet, so it is also a liability
Interest received is revenue
Accrued interest is an asset as we have earned the interest but have not yet received it
Interest received in advance is a liability
Outstanding interest is interest we have to pay and not paid yet, so it is also a liability
Interest received is revenue
Accrued interest is an asset as we have earned the interest but have not yet received it
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