Multiple Select Question Select all that apply Why is an adjustment necessary for interest...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Multiple Select Question Select all that apply Why is an adjustment necessary for interest accrued on a note payable at the end of the period if the interest will not be paid until the note is due? Check all that apply. Even though the interest will not be paid until a future period, the expense was actually incurred during the current accounting period. The accrued interest needs to be credited to the Note Payable account to accurately report the total amount due on the note. The adjustment is needed to accurately portray the interest liability of the company, all amounts owed should be reported on the balance sheet. Interest Revenue should be increased to reflect the amount of the interest generated during the current period. 
Multiple Select Question
Select all that apply
Why is an adjustment necessary for interest accrued on a note payable at the end of the period if the interest will not be paid until the note is due? Check all that
apply.
Even though the interest will not be paid until a future period, the expense was actually incurred during the current accounting period.
The accrued interest needs to be credited to the Note Payable account to accurately report the total amount due on the note.
The adjustment is needed to accurately portray the interest liability of the company, all amounts owed should be reported on the balance sheet.
Interest Revenue should be increased to reflect the amount of the interest generated during the current period.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.