Asked by razan osman on Jul 05, 2024
Verified
The accrual of interest results in an increase liabilities and a decrease in cash.
Decrease Cash
Decrease cash refers to a reduction in the amount of money and cash equivalents available in a company, which can result from paying expenses, purchasing assets, or distributing dividends.
- Grasp the concept of interest accrual on liabilities and its accounting treatment.
Verified Answer
PT
Ph??c Th?nhJul 12, 2024
Final Answer :
False
Explanation :
The accrual of interest increases liabilities but does not immediately affect cash; it represents an expense that has been incurred but not yet paid.
Learning Objectives
- Grasp the concept of interest accrual on liabilities and its accounting treatment.