Interest expense on a note payable, with interest due at maturity, is
A) always equal to zero.
B) accrued over the life of the note.
C) only recorded at the time the note is issued.
D) only recorded at maturity when the note is paid.

Question

Quizplus · Accepted Answer

Interest expense on a note payable is accrued over the life of the note because it represents the cost of borrowing money, which accumulates over time until the note matures.

Interest Expense on a Note Payable, with Interest Due at Maturity