Question

Under the accrual concept, which one of the following will not be shown as an asset/liability in the balance sheet of an entity?

• A. Interest due but not paid.
• B. Interest due but not received.
• C. Interest due and paid.
• D. Interest paid but not due.

Answer 1

The correct option is C Interest due and paid.

Under the accrual concept, is the fundamental concept of accounting in which revenues are recorded when they are earned and not received in cash, and recording expenses when they are incurred and not actually paid.

Hence point C is the only one which will not appear in the balance sheet as its been due and paid.