Effects of accrued interest on the financial statements

On the accrual basis, revenue is recognized after the original transaction is completed, after its value can be calculated and the amount can be received without a doubt. In addition, accrual accounting requires that the time when revenue and expenses are earned are recognized at the same time. Therefore, the expense must be recognized in the same period when the revenue is generated. Therefore, the...

more →

Posted in: Personal Finance

Top of page