Which of the Following Is Not a True Statement About

question 207

Multiple Choice

Which of the following is not a true statement about the accounting for long-term debt investments?

• A)The investment is initially recorded at cost.
• B)The cost includes any brokerage fees.
• C)Debt investments include investment in government and corporation bonds.
• D)The cost includes any accrued interest.

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Definitions:

Angel Investor

A type of investor who uses his or her own money to provide funds to young startup private businesses run by entrepreneurs who are neither friends nor family.

Private Businesses

Enterprises owned by individuals or groups without governmental shares and not traded on the public stock markets, characterized by privately held ownership structures.

Entrepreneurs

Individuals who organize and operate businesses, taking on greater than normal financial risks.

Venture Capital Industry

The financial sector involved with providing funding to early-stage, high-potential, growth startup companies in exchange for equity or an ownership stake.