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When a note receivable is dishonored, the debt can no longer be collected and is treated as an uncollectible account.
unearned revenue
False
True
False
True
False
False
True
A note receivable accepted for the sale of merchandise when no cash is received up front would be recorded as a debit to Notes Receivable and a credit to Sales.
unearned revenue
False
True
False
True
False
False
True
When a business has only a few notes receivable outstanding, it records a separate adjusting entry for the accrued interest on each note.
unearned revenue
False
True
False
True
False
False
True
Unearned revenue is initially recorded either as a liability or as an expense.
unearned revenue
False
True
False
True
False
False
True
Revenue received in one fiscal period but not earned until the next fiscal period is
unearned revenue
False
True
False
True
False
False
True
Interest Income earned on notes receivable is classified in the financial statements as Other Revenue.
unearned revenue
False
True
False
True
False
False
True
Since notes receivable are generally due within a year, they are classfied as current liabilities in the financial statements.
unearned revenue
False
True
False
True
False
False
True
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.
unearned revenue
False
True
False
True
False
False
True
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