Interacting Binaries consist of a variety of stellar objects in different stages of evolution and those containing accreting compact objects still represent a major challenge to our understanding of not only close binary evolution but also of the chemical evolution of the Galaxy. These end-points of binary star evolution are ideal laboratories for the study of accretion and outflow processes, and provide insight on matter under extreme physical conditions. One of the key-questions of fundamental relevance is the nature of SN Ia progenitors. The study of accreting compact binary systems relies on observations over the entire electromagnetic spectrum and we outline here those unresolved questions for which access to the ultraviolet range is vital, as they cannot be addressed by observations in any other spectral region.