Interest Revenue on Bonds Is Reported

question 94

Multiple Choice

Interest revenue on bonds is reported

• A) as an addition to the Investment in Bonds account
• B) as part of comprehensive income but not as part of net income
• C) as part of other revenue
• D) as part of operating income

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Definitions:

Contract with Wholesalers

An agreement between a producer and entities that buy products in bulk, intending to distribute them further.

Undisclosed Principal

In an agency relationship, a principal whose identity is not revealed to the third party by the agent.

Implied Authority

Authority of an agent that is not expressly granted but assumed to be given as necessary to perform tasks related to their job.

Actual Authority

The explicit power granted to an agent or representative by the principal to perform certain acts on their behalf.