Would it be an acceptable accounting practice if the accounting manager decides not to record the interest expense on the bank loan until it is paid out? Select one: a. No. If management fails to accrue interest at the end of an accounting period, the financial statements will understate liabilities (since interest payable is understated) and overstate net income (since interest expense is understated). b. Yes. The management can choose to report interest expense only when profits are not impacted negatively. c. None of the choices available d. No. If management fails to accrue interest at the end of an accounting period, the financial statements will overstate liabilities (since interest payable is overstated) and understate net income (since interest expense is understated)

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