Regarding accounting entries for debt securities, which of the following is true?

A) The receipt of interest revenue is recorded with a debit to Interest Revenue and a credit to Cash.
B) Investments in debt securities are recorded at cost, including any brokerage fees paid.
C) The receipt of interest revenue is recorded with a debit to Cash and a credit to Long-term Securities-Held-to-Maturity.
D) Debt securities disposed of at maturity are recorded with a debit to the Short-term or Long-term Investments account and a credit to Cash.


B

Business

You might also like to view...

Which of the following is true of competitive marketing intelligence?

A) It can predict a firm's future but not the pattern of forces in the market. B) It cannot be collected from internal sources of a firm such as employees and the sales force. C) It requires inside information from a competitors' internal database. D) It can be obtained from information that is available in the public domain. E) It can be obtained from online databases only through subscription and a fee.

Business

Effective speakers must be aware of their nonverbal messages. Nonverbal means A) content delivered by visual aids

B) information included on the outline, but not in the speech. C) appearance, movements, and vocal qualities. D) body language only.

Business

Green purchasing involves identifying, assessing, and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment

Indicate whether the statement is true or false

Business

Sunk costs and opportunity costs are inherent in decision making.Required: A. Define the terms "sunk cost" and "opportunity cost."B. How are sunk costs treated when making decisions?C. "Information about sunk costs can be found in the financial statements and accounting records; however, information about opportunity costs is omitted." Do you agree with this statement? Explain.

What will be an ideal response?

Business