Whether making investments or borrowing money,we don't need to recognize the interest
we receive or pay.

Question

Quizplus · Accepted Answer

Interest is a financial cost or benefit that should be recognized and accounted for in financial statements. The interest received or paid can have a significant impact on the profitability and financial position of an entity. Therefore, it is essential to recognize interest in financial reporting.

Whether Making Investments or Borrowing Money,we Don't Need to Recognize