On the Maturity Date of a Bond Investment,the Journal Entry

question 121

Multiple Choice

On the maturity date of a bond investment,the journal entry includes ________.

• A)a debit to Cash and a credit to Long-term Investments - Held-to-Maturity
• B)a debit to Long-term Investments - Held-to-Maturity and a credit to Cash
• C)a debit to the Interest Revenue and a credit to Cash
• D)a debit to Cash and a credit to Interest Revenue

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Definitions:

Equation Interpretation

The process of understanding the mathematical and practical significance of the parameters and variables in an equation.

Cost Of Goods Sold

The immediate expenses linked to the manufacturing of goods a company sells, encompassing costs for materials and labor.

Current Assets

Short-term assets that a company owns, which are expected to be converted into cash within one year, such as inventory, cash, and accounts receivable.

Average Collection Period

A financial metric that measures the average number of days it takes a company to collect payments from its credit sales.