Are accrued expenses interest bearing?

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Nagle 0 Comments

Are there any accrued expenses that are interest bearing? What kind of accrued expenses can be interest bearing. Do you know how to account for the interest?

2 Answers

score 0 · Answer 1 · 2012-12-02T21:29:49+00:00

No accrued expenses are expenses that have been incurred but not yet invoiced for example. Let’s say that you receive the invoice for the rent every quarter starting from January so you will receive an invoice in March, June etc. If your year end is May, you will have an accrual for one month of rent. Unless, you have agreed to pay interest,most of the times accruals are not interest bearing balances.

score 0 · Answer 2 · 2013-05-04T18:14:13+00:00

There are times that you will need to accrue the interest part of loan for example.