Which of the Following Is Not Generally Correct About Recording

question 48

Multiple Choice

Which of the following is not generally correct about recording a sale of a debt security before maturity date?

• A) Accrued interest will be received by the seller even though it is not an interest payment date.
• B) An entry must be made to amortize a discount to the date of sale.
• C) The entry to amortize a premium to the date of sale includes a credit to the Premium on Investments in Debt Securities.
• D) A gain or loss on the sale is not extraordinary.

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