Interest revenue must be reported for a bill receivable that is outstanding at the end of the accounting period.

Question

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According to accounting principles, interest revenue must be recognized for any outstanding bills receivable at the end of the accounting period, even if the payment is not received until a later date. This is in accordance with the accrual basis of accounting, which matches revenue earned with the period in which it is earned, not necessarily the period in which cash is exchanged.

Interest Revenue Must Be Reported for a Bill Receivable That