When a loan is classified as nonperforming,any accrued interest recorded on the books,but not actually received,must be deducted from the bank's loan revenues.

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Quizplus · Accepted Answer

This is true because nonperforming loans are those loans where the borrower is not making payments as agreed, and the bank may not receive the full amount of the loan. Therefore, any interest accrued on the loan may not actually be received by the bank, and must be deducted from the loan revenues on the books.

When a Loan Is Classified as Nonperforming,any Accrued Interest Recorded