Question

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.
a) true
b) false

Answer 1

Answer:

True

Explanation:

The matching principle states that only those payments and receipts which actually are paid or received. the interest accrued is not included unless it is paid