Interest expense is recorded in the period in which:____.
a. the interest is paid or incurred.
b. the interest is incurred.
c. the interest is paid.
d. the interest is paid and incurred.

Borrowing money has a cost, which is represented by interest expenditure. It is the fee a lender assesses to a borrower in exchange for the usage of its funds. The cost of borrowing money from lenders like banks and bond investors can be shown as interest expenditure on the income statement.

How are interest costs recorded?

You must pay interest when you take out a loan or credit line. The cost and accrued interest must be recorded in your books. Debit your Interest Expense account and credit your Accrued Interest Payable account to reflect the accrued interest for a given accounting period. Your payable and expense accounts will grow as a result.

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Interest expense is recorded in the period in which:____. a. the interest is paid or incurred. b. the interest is incurred. c. the interest is paid. d. the interest is paid and incurred.

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What is Interest expense?

How are interest costs recorded?

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Interest expense is recorded in the period in which:____.
a. the interest is paid or incurred.
b. the interest is incurred.
c. the interest is paid.
d. the interest is paid and incurred.