Clarion Corp.invested cash in a six-month certificate of deposit (CD)on November 1,2017.If Clarion Corp.has an accounting period that ends on December 31,2017,when should Clarion recognize interest revenue from the CD?

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Interest revenue should be recognized as it is earned. Since the CD is a six-month investment starting November 1, 2017, interest is earned over the period. Therefore, Clarion should recognize interest revenue at the end of the accounting period on December 31, 2017, for the interest earned up to that date, and again on May 1, 2018, when the CD matures.