Adv. Accounting - Ch. 10 Review

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Revenue received in one fiscal period but not earned until the next fiscal period is

When a note receivable is dishonored, the debt can no longer be collected and is treated as an uncollectible account.

Since notes receivable are generally due within a year, they are classfied as current liabilities in the financial statements.

Interest Income earned on notes receivable is classified in the financial statements as Other Revenue.

When a business has only a few notes receivable outstanding, it records a separate adjusting entry for the accrued interest on each note.

The 2 types of revenue that require special accounting procedures at the end of a fiscal period are 1) unearned revenue and 2) accrued revenue.

Revenue earned in one fiscal period but not received until a later fiscal period is

Unearned revenue is initially recorded either as a liability or as an expense.