Multiple Choice
Which of the following statements regarding the recording of interest on notes receivable is true?
A) Interest on notes receivable is recorded as revenue only when the cash is received.
B) When a company receives an interest payment on a note,the entire payment is debited to interest receivable.
C) Interest on notes receivable is recognized when it is earned which is not necessarily when the interest is received in cash.
D) Interest earned but not yet received must be recorded in an adjusting entry which includes a debit to interest revenue.
Correct Answer:
Verified
Correct Answer:
Verified
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