True because the net note receivable increases over time so the interest revenue differs between periods.
Notes receivable reflect claims for which formal instruments of credit, such as a promissory note, are issued as evidence of obligation. The credit instrument usually compels the debtor to pay interest and lasts for 30 days or more. A note receivable is an asset account linked to an underlying promissory note, which defines the payment arrangements for a purchase between a "payee" (often a firm, and sometimes referred to as a creditor) and the "maker" of the note in writing (usually a customer or employee, and sometimes called a debtor).
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