To calculate an adjustment for interest accrued during a period, a company needs to:
A) calculate interest on the note.
B) calculate the number of days the note has already run before the end of the current period.
C) calculate interest incurred for this period.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

To accurately adjust for interest accrued during a period, a company must calculate the interest on the note, determine the number of days the note has been active before the end of the current period, and calculate the interest incurred specifically for this period.

To Calculate an Adjustment for Interest Accrued During a Period