Question

Interest payable on the bonds is a/an _______

A Provision Correct Answer Incorrect Answer
B Accrued expense Correct Answer Incorrect Answer
C Accrued income Correct Answer Incorrect Answer
D Prepaid expense Correct Answer Incorrect Answer

Solution

An accrued expense is one that is known to be due in the future with certainty. Interest payable on the bonds is a known figure. It can be estimated well ahead of time, and money can be set aside for it

Practice Next
×
×