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Mathematics, 27.09.2020 14:01 cookiemonster0476
A tire manufacturing company took a bank loan in November 2014 to increase production. The yearly interest payable on the loan is $10,000. The
company made the first interest payment of $10,000 on February 21, 2015. However, it recorded this amount as a loan interest expense in its financial
statements for the year 2014. To which accounting principle is this practice related? The company's accounting period is from January 1 to December
31.
objectivity principle
revenue recognition principle
o accrual principle
Dual-aspect principle
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A tire manufacturing company took a bank loan in November 2014 to increase production. The yearly in...
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