[amp_mcq option1=”Interest account” option2=”Interest suspense account” option3=”Seller account” option4=”All of the above” correct=”option2″]<\/p>\n
The correct answer is: B. Interest suspense account<\/strong><\/p>\n The asset account is debited from the original value of the asset in the books of buyer and the interest suspense account is debited with the total amount of interest.<\/p>\n The interest suspense account is a temporary account that is used to record the interest that has accrued on a loan but has not yet been paid. The interest is recorded in this account until it is paid, at which point it is transferred to the interest income account.<\/p>\n The interest suspense account is used to ensure that the interest is recorded in the correct period. If the interest were not recorded in a separate account, it would be difficult to determine when the interest was actually earned.<\/p>\n The interest suspense account is also used to prevent the interest from being double-counted. If the interest were recorded in the asset account, it would be recorded twice: once when the loan was made and again when the interest was paid.<\/p>\n The interest suspense account is a valuable tool for accounting for interest. It ensures that the interest is recorded in the correct period and that it is not double-counted.<\/p>\n The other options are incorrect because they do not accurately reflect the accounting treatment of interest.<\/p>\n [amp_mcq option1=”Interest account” option2=”Interest suspense account” option3=”Seller account” option4=”All of the above” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-49184","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n