Respuesta :
Interest incurred, but not yet paid during an accounting period, should be recorded as an Accrued Expense.
Accrued Expense is an expense which is incurred in one accounting period but not yet paid.
Recording an accrued expense means that transaction has been recorded when it incurred but not yet paid.
It is shown on the liability side of the balance sheet as a current liability because it makes obligation for the company to pay its expenses.
It helps in showing the true and fair view of the financial statements .
It requires more journal entries to record than simple cash balance accounting.
It increases both expense and liabilities as unpaid bills get accumulated.
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