When Withheld Union Dues Are Turned Over to the Union

question 74

True/False

When withheld union dues are turned over to the union by the employer, a journal entry is made debiting the liability account and crediting the cash account.

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Definitions:

Convertible Debt

Debt instruments that can be converted into a predetermined number of shares of the issuing company's stock.

Zero-Coupon

Bonds or debt securities that are issued at a discount and do not pay periodic interest payments, instead offering a lump sum at maturity.

U.S. GAAP

United States Generally Accepted Accounting Principles, which are a set of rules and guidelines that companies follow when preparing financial statements in the U.S.

Convertible Debt

A type of bond or loan that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the debt holder.