In conformity with the matching principle,interest expense is reported when incurred rather than when paid.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the corresponding revenue. Interest expense is an expense that is incurred over time as interest accrues on debt, and it should be recognized in the periods to which it relates, rather than in the period when it is paid. Therefore, under the matching principle, interest expense should be reported when incurred rather than when paid.

In Conformity with the Matching Principle,interest Expense Is Reported When