Toppson Corp.invested cash in a 9-month certificate of deposit (CD) on October 1, 2016.If Toppson has an accounting period which ends on December 31, 2016, when would it most likely recognize interest revenue from the CD?

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Interest revenue from a certificate of deposit is typically recognized at the end of the term, which for Toppson would be July 1, 2017. However, because Toppson's accounting period ends on December 31, 2016, it would also need to recognize any interest earned from the date of purchase (October 1, 2016) through December 31, 2016. Therefore, interest revenue would be recognized on both December 31, 2016 and July 1, 2017.