An adjustment must be made at the end of an accounting period to accrue the interest expense on bonds payable and to amortize any related premium or discount from the last interest payment date to the end of the fiscal year.

Question

Quizplus · Accepted Answer

Accruing interest expense and amortizing premiums/discounts is a necessary adjustment at the end of an accounting period for accurate financial reporting.

An Adjustment Must Be Made at the End of an Accounting