Interest must be accrued on all current notes payable. For long-term notes the interest is accrued at the maturity of the note.

Question

Quizplus · Accepted Answer

Interest on both current and long-term notes payable is typically accrued over the period the note is outstanding, not just at maturity. This is to match the interest expense with the period in which the debt is outstanding, in accordance with the matching principle of accounting.

Interest Must Be Accrued on All Current Notes Payable