A company has taken a bank loan of $200,000 in December and will make its only payment for interest when the note comes due six months later. The total interest for the six months will be $12,000. On the December income statement, the accountant reported an interest expense of $2,000. This action was the result of which accounting principle/guideline?

A$100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, the six-month libor is exchanged semi-annually for 12% per annum. the six-month libor rate in swaps of all maturities is currently 10% per annum with continuous compounding. the six-month libor rate was 9.6% per annum two months ago. what is the current value of the swap to the party paying floating? what is its value to the party paying fixed?