User: Discuss how and why interest expense is allocated between measurement periods

Weegy: Interest on a loan usually are over an extended period of time like one year or more Your income measurement period should be as equal as possible say 4 weeks - this way you can compare your income much better to the last measurement period Each [ month you get your loan billing which includes the interest and when you enter that of course it becomes an expense to income - for the measurement period you want to book only expired or used (what's due) interest - some banks will show the interest due - others do not so you want to amortize the loan so you can expire the interest as used and not charge it all to principle - to keep your measured income as even and true as possible and you would not want all the interest for the entire loan in one period of time - that's why it should be broken up into expired (expense) and unexpired or has not become an expense yet. Notes payable or bank loans often are used to fund the business - it is a good thing if the bank feels that the business generates a profit and has sufficient assets to warrant a line of credit - at some point in time the loans will wash to zero and the company working capital is not tied up in cash payments - yes, it is a sound business policy http://answers.yahoo.com/question/?qid=20110731084349AAxT6EM ]
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User: As a business manager should you be concerned when notes payable are used in funding the operations of the business

Note: ... to meet their short-term funding needs. Short-term notes payable are ... in a position of needing a business loan to continue operations ... of an Accounts Payable Manager? [www.ehow.com/info_8149692_loan-payable-account-used.html]
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Weegy: True. As a business manager should you be concerned when notes payable are used in funding the operations of the business.
Expert answered|sipichapie|Points 1431|