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What are the accrued interests?

Accrued interests are one of the liability categories in the balance sheet. They include interest on loans that the company owes to its creditors.

For example, if you borrow at the beginning of November with a quarterly repayment frequency, your balance sheet at the end of December will contain accrued interest not yet due on the months of November and December. This accrued interest will be paid on the next due date, which will be three months after the loan is signed.

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