Principal and interest expenditures on general long-term debt should be recognized in the period

Question

Quizplus · Accepted Answer

The principal and interest expenditures on general long-term debt should be recognized in the period that they are legally due and payable. This is in accordance with the accrual basis of accounting, which requires expenses to be recognized when they are incurred or when they become due, whichever is earlier. The payment of the debt may occur in a later period, but that does not change the fact that the expense was incurred in the period that it was due and payable.

Principal and Interest Expenditures on General Long-Term Debt Should Be