Which of the Following Is Not Generally Correct About Recording

question 19

Multiple Choice

Which of the following is not generally correct about recording a sale of a debt investment before maturity date?

• A)Accrued interest will be received by the seller even though it is not an interest payment date.
• B)An entry must be made to amortize a discount to the date of sale.
• C)The entry to amortize a premium to the date of sale includes a debit to Debt investments.
• D)A gain on the sale is the excess of the selling price over the book value of the bonds.

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Definitions:

Divorced

The formal termination of a matrimonial union by a judicial body or an authoritative institution.

Relative

A person connected to another by blood or marriage, or an entity regarded in relation to its connections with others within a system.

Orphaned Children

Children who have lost both parents through death or, in some definitions, have been abandoned by their parents.

Parental Attention

The degree of care, awareness, and responsiveness a parent shows towards their child's needs and activities.