Interest on an obligation is recorded:
A)as time passes.
B)when goods are purchased on account.
C)at maturity.
D)when a bank loan is obtained.

Name: Interest on an obligation is recorded: A)as time passes. B)when goods are purchased on account. C)at maturity. D)when a bank loan is obtained.
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Question

Quizplus · Accepted Answer

Interest arises only when time passes,so no interest is recorded on the day the company purchases an item on account or the day the company receives a loan.

Interest on an Obligation Is Recorded