Question

After the adjustments have been completed, the adjusted balance in the Interest Payable account represents Click the answer you think is right. Interest that has been prepaid on existing debt at the end of the period Interest on notes receivable owed to the company interest that has accrued, but has not been paid, at the end of the period total interest that has been paid or accrued during the period

Answer 1

After the adjustments have been completed, the adjusted balance in the income tax expense account represents _____

Answer : Interest that has accrued, but has not been paid, at the end of the period.

Explanation :

The balance in interest payable account means the amount of interest which is owed to lender.

Interest Payable account is added in he balance sheet of the company. It is added in the liability section of balance sheet as current liabilities. The balance of this account represents the amount of interest expense that has accrued, but not been paid at the year end. Hence it is accrued and not paid, it is also called as accrued interest.