GAAP requires the borrowers to record the note payable at its present value and use straight line method to record the interest expense.

Name: GAAP requires the borrowers to record the note payable at its present value and use straight line method to record the interest expense.
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Quizplus · Accepted Answer

GAAP allows for both the straight-line method and the effective interest rate method for recording interest expense, but it does not mandate the use of the straight-line method exclusively.

GAAP Requires the Borrowers to Record the Note Payable at Its