 Hello! In this presentation, we will discuss the discussion question of, why don't we record interest at the inception of a loan? Another way this essay question could be asked is just simply, what is interest? What is interest expense? In order to answer this question, we need to consider, you know, how does interest expense happen? How does it accumulate? How is interest used within the recording? And then, of course, how do we record that interest expense and what is going to be the effect on the financial statements? Why this question is a bit of a problem is because the idea of interest one can be a bit abstract. And when we first see interest within the recording of a problem, especially within a comprehensive problem, or even when with a short answer question, we often see something like a loan. We're going to take the loan out. It's going to be a $10,000 loan. We're going to make so many payments and the interest rate is going to be 5% or something like that. And when we record the