The Matching Principle Requires That Interest Expense Not Be Accrued

question 142

True/False

The matching principle requires that interest expense not be accrued on a note payable until the note is paid, even if the end of an accounting period occurs between the signing of a note payable and its maturity date.

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Definitions:

Apple Computer

A technology company that designs, manufactures, and markets consumer electronics, software, and services, well-known for products like the iPhone and MacBook.

Stock Holdings

The portfolio of stocks or shares owned by an individual, institution, or entity, representing investment or ownership interest.

Reduction In Risk

A decrease in the uncertainty associated with the return on an investment or the outcome of an action, often pursued through diversification or insurance.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.