The matching principle requires that accrued interest on outstanding notes receivable be recorded at the end of each accounting period.

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be matched with the corresponding revenues in the same accounting period. Accrued interest on outstanding notes receivable is an expense that should be matched with the corresponding revenue earned from the notes. Therefore, it should be recorded at the end of each accounting period.

The Matching Principle Requires That Accrued Interest on Outstanding Notes