Even if the end of an accounting period occurs between the signing of a note payable and its maturity date, the matching principle requires that interest expense not be accrued on a note payable until the note is paid.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recorded in the period they are incurred, so interest expense should be accrued over the life of the note, not just when it is paid.

Even If the End of an Accounting Period Occurs Between