When a Notes Receivable Is Outstanding at the End of an Accounting

Multiple Choice

When a notes receivable is outstanding at the end of an accounting period,________.

A) no adjusting entry is needed
B) the revenue recognition principle requires that earnings from the note be recorded in the year the cash is received
C) the total interest on the note should be recorded in an adjusting entry
D) the interest revenue earned on the note up to year-end is part of that year's earnings