The expense recognition (matching) principle requires that accrued interest on outstanding notes receivable be recorded at the end of each accounting period.

Question

Quizplus · Accepted Answer

The expense recognition principle, also known as the matching principle, requires that expenses be recognized in the same period as the corresponding revenue. Accrued interest on outstanding notes receivable is an expense that should be recognized at the end of each accounting period in accordance with this principle. Therefore, the statement is true.

The Expense Recognition (Matching) Principle Requires That Accrued Interest on Outstanding