On January 1, Waverly Company Purchased as an Investment a $1,000

question 85

Multiple Choice

On January 1, Waverly Company purchased as an investment a $1,000, 6% bond for $1,000. The bond pays interest on January 1 and July 1. What is the entry to record the interest accrual on December 31?

---

Definitions:

Habituation

The process by which an organism decreases or ceases its responses to a repetitive stimulus over time, indicating a basic form of learning.

Sensitization

An increase in behavioral response after exposure to a stimulus, often as a result of an enhanced reaction to a subsequent stimulus.

Habituation

A decrease in response to a stimulus after repeated exposure to it, representing a fundamental form of learning.

Sensitization

An increased reaction to a stimulus following repeated exposure, often used in the context of drug tolerance or allergic reactions.