During the year, Financial Services Inc. purchased $1 million of 10-year bonds for $980,000 to earn interest. Financial Services reported interest revenue of $27,300 on its investment in the bonds in its income statement and cash receipts for interest of $25,000 in its cash flow statement. Terry, the VP finance, argued, "The cash receipts for interest must be understated; the company has received all the interest owed to it. Therefore, the cash collected should equal the interest revenue reported." Is Terry correct? Explain why or why not.