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

question 1

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

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Definitions:

Response Substitution

A phenomenon whereby one inappropriate behavior is suppressed and another inappropriate behavior occurs.

Suppression

The act of stopping or inhibiting something from occurring, often referring to behaviors, thoughts, or emotional expressions.

Throwing Furniture

An example of an extreme behavioral response, often used in discussions about managing challenging behaviors in environments such as classrooms or therapeutic settings.

Response Cost

A type of behavior modification technique that involves removing a reward or positive reinforcement to decrease unwanted behaviors.