Which of the Accounts Listed Is Not Part of a Firm's

question 58

Multiple Choice

Which of the accounts listed is not part of a firm's working capital?

• A) Plant and equipment
• B) Marketable securities
• C) Cash
• D) Accounts receivable

Recognize transactions exempt from imputed interest rules.

Define Original Issue Discount (OID) and explain its creation.

Describe the methodology for computing the initial amount of an Original Issue Discount (OID).

Explain the process of reporting interest income from an OID instrument.