Because of the Revenue Recognition Principle,interest on a Note Receivable

question 19

True/False

Because of the revenue recognition principle,interest on a note receivable is recorded in the year in which it is earned.

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Definitions:

Worksheet

A worksheet in accounting is a document used to compile information from ledger accounts for the purpose of preparing financial statements.

Control Account

An account used in accounting to summarize the total balances of multiple individual accounts, facilitating internal checks and balances.

Special Journals

Customized accounting journals used for recording and categorizing specific types of transactions such as sales, purchases, and cash receipts in an efficient manner.