Recording Short-Term Noninterest-Bearing Notes Receivable at Their Maturity Value

question 166

Multiple Choice

Recording short-term noninterest-bearing notes receivable at their maturity value

• A) overstates interest income and understates sales revenue.
• B) overstates sales revenue and understates interest income.
• C) correctly states sales revenue and interest income.
• D) is prohibited by GAAP.

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