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:

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