When Bonds Are Retired Before Maturity

question 64

Multiple Choice

When bonds are retired before maturity,

• A)only a loss on redemption can be recorded.
• B)only a gain on redemption can be recorded.
• C)either a gain or a loss on redemption can be recorded.
• D)neither a gain nor a loss on redemption can be recorded.

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Definitions:

Commercial Aircraft

Airplanes designated for carrying passengers or goods, operated by airlines or cargo carriers, as opposed to military or private aircraft.

Flight Attendant

An airline employee responsible for ensuring the safety, comfort, and service to passengers aboard flights.

Bailment for Reward

A legal relationship that involves the temporary transfer of personal property to another for a specified fee or reward.

Grossly Negligent

Showing a severe lack of care or deliberation that results in blatant disregard for the safety or rights of others, often leading to extreme harm or risk.