Storefrontcash a cash-method taxpayer makes short-term, Ask an Expert

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StorefrontCash, a cash-method taxpayer, makes short-term loans with a maturity of a year or less and long-term loans with a longer maturity. All loans require quarterly payment of interest on the day of the third, sixth, ninth and twelfth subsequent month, etc. corresponding to the date of the loan. At the end of its tax year there was outstanding interest on both kinds of loans. Does StorefrontCash have to accrue any of the outstanding interest? Explain with references to primary sources.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92640181

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