Consider Each of the Items Below

question 147

Multiple Choice

Consider each of the items below. Place the proper letter in the blank space provided to indicate the nature of the account or accounts to be debited when recording each transaction using the preferred accounting treatment. Prepayments should be recorded in balance sheet accounts. Disregard income tax considerations unless instructed otherwise.
-Lambert Company recorded the first year’s interest on 6% $100,000 ten-year bonds sold a year ago at 94. The bonds were sold in order to finance the construction of a hydroelectric plant. Six months after the sale of the bonds, the construction of the hydroelectric plant was completed and operations were begun. (Only cash interest, and not discount amortization, is to be considered.)

• A)asset(s) only
• B)accumulated amortization, depletion, or depreciation only
• C)expense only
• D)asset(s) and expense
• E)some other account or combination of accounts

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Definitions:

Musculoskeletal Disorders

Conditions that affect the human body's movement or musculoskeletal system (i.e., muscles, tendons, ligaments, nerves, discs, blood vessels).

Wellness

An active process of becoming aware of and making choices toward a healthy and fulfilling life.

Practice Management

The administration and operation of a healthcare practice, including financial, personnel, and day-to-day activities.

Administrative Operations

Activities involved in the day-to-day running of a business or organization, including tasks related to planning, organizing, and overseeing.