Question

Accrued Interest is a Personal Account.

• A. True
• B. False

Answer 1

The correct option is A True

Accrued income is the income which has been earned during a particular accounting period, but has not been received till the end of that accounting period. So, they grow by addition and stay due to being received in the forthcoming accounting periods.

Accrued income is recorded in the books at the end of an accounting period to show true numbers of a business.

Personal accounts are related ton individuals, firms, companies, etc. They are classified into three subcategories: Artificial, Natural and Representative.

Representative personal accounts represent a certain person or a group directly or indirectly. Accrued interest is a representative personal account indirectly linked to the person, and is shown on the assets side of a balance sheet.