Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on September 1, 2020 that will come due on March 1, 2021. If Cardinal Company's fiscal year ends on December 31, 2020, the interest revenue earned would be recognized from the note receivable on: (Remember The Revenue Recognition Principle) A. on December 31, 2020 only B. on September 1, 2020 C. on March 1, 2021 only D. on December 31, 2020 and March 1, 2021
Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on September 1, 2020 that will come due on March 1, 2021. If Cardinal Company's fiscal year ends on December 31, 2020, the interest revenue earned would be recognized from the note receivable on: (Remember The Revenue Recognition Principle) A. on December 31, 2020 only B. on September 1, 2020 C. on March 1, 2021 only D. on December 31, 2020 and March 1, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on September 1, 2020 that will come due on March 1, 2021. If Cardinal Company's fiscal year ends on December 31, 2020, the interest revenue earned would be recognized from the note receivable on: (Remember The Revenue Recognition Principle)
- A. on December 31, 2020 only
- B. on September 1, 2020
- C. on March 1, 2021 only
- D. on December 31, 2020 and March 1, 2021
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