When an Investor's Accounting Period Ends on a Date That

question 75

Multiple Choice

When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must

• A) make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date.
• B) notify the issuer and request that a special payment be made for the appropriate portion of the interest period.
• C) make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date.
• D) do nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.

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A series of chemical reactions or changes that lead to the transformation of one set of chemical substances to another.

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A specialized cell transmitting nerve impulses; a nerve cell.

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A protein molecule that receives and responds to chemical signals, such as hormones or neurotransmitters, within the body.