Crescent Corporation's interest revenue for 2011 was $13,100. Accrued interest receivable on December 31, 2011, was $2,275 and $1,875 on December 31, 2010. The cash received for interest during 2011 was
A) $1,350.
B) $10,825.
C) $12,700.
D) $13,100.

Question

Quizplus · Accepted Answer

The cash received for interest is calculated by adjusting the interest revenue for the change in accrued interest receivable: $13,100 (interest revenue) - ($2,275 - $1,875) = $12,700.

Crescent Corporation's Interest Revenue for 2011 Was $13,100