The adjusting entry to record interest accrued on bonds at the end of the accounting period can be reversed on the first day of the following period.

Question

Quizplus · Accepted Answer

This statement is true. The adjusting entry for interest accrued on bonds is typically reversed at the beginning of the next accounting period to reset the accounts and accurately reflect the current interest expense and liability.

The Adjusting Entry to Record Interest Accrued on Bonds at the End