Interest revenue for the current year was $4,500 more than cash collected for interest.This difference is most likely due to a(n):

Question

Quizplus · Accepted Answer

An increase in the interest receivable account indicates that more interest revenue was recognized than cash collected, explaining the $4,500 difference. This is because interest revenue is recorded when earned, not necessarily when cash is received.

Interest Revenue for the Current Year Was $4,500 More Than