View Policies Current Attempt in Progress Pharoah Company is a cash-basis business. Pharoah signed a 6-month, 13% note payable of $12400 on October 1, 2022. By recording the interest expense related to the note only when it is paid on April 1, 2023, Pharoah will understate expenses by on its year-end financial statements on December 31, 2022. $0 $403 $806 $14012 Save for Later Attempts: 0 of 1 used Submit