Accrued Interest on a Note Receivable Is Interest Earned by the End

question 122

True/False

Accrued interest on a note receivable is interest earned by the end of the year but not yet received.

---

Definitions:

Financing Nature

The characteristic manner or method in which a company prefers to finance its operations, typically equity, debt, or a hybrid.

Spontaneous Financing

Financing provided by current liabilities that arise automatically as a result of doing business.

Accounts Payable

Short-term liabilities a company owes to its creditors or suppliers, expected to be settled within one year.

Bank Loan

A sum of money borrowed from a bank that needs to be repaid with interest.