We record interest expense in the period in which we pay it,rather than in the period we incur it.Interest expense is recorded in the period incurred,not in the period in which we pay it.

Question

Quizplus · Accepted Answer

This statement is incorrect. Interest expense is recorded in the period in which it is incurred, not necessarily in the period in which it is paid. This is known as the accrual method of accounting.

We Record Interest Expense in the Period in Which We