Interest on a Note Payable is most appropriately accrued:
A)when the note is signed.
B)as of the end of each accounting period during which the note is a liability.
C)when principal payments on the note are made.
D)when the interest is paid.

Question

Quizplus · Accepted Answer

Interest on a Note Payable is accrued at the end of each accounting period to match the expense with the period in which it is incurred, according to the accrual basis of accounting.

Interest on a Note Payable Is Most Appropriately Accrued