Pure Discount Bonds, Which Are Created by Separating the Interest

question 92

Multiple Choice

Pure discount bonds, which are created by separating the interest and principal payments from U.S. Treasury bonds, are called U.S. Treasury:

• A)notes.
• B)bills.
• C)STRIPS.
• D)SWAPS.
• E)tax-exempts.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

General Ledger

A complete record of all financial activities conducted by a company throughout its existence.

Post-closing Trial Balance

A financial statement listing all accounts and their balances after closing entries are made, ensuring that debits equal credits.