When Converting to Government-Wide Financial Statements, the Entry to Record

question 120

Multiple Choice

When converting to government-wide financial statements, the entry to record the amortization of the premium on a bond would look like:

• A) Debit to the Premium on bonds payable and a credit to premium expense
• B) Debit to the Premium on bonds payable and a credit to interest expense
• C) Debit to the Bond Payable and a credit to Premium on bonds payable
• D) There is no entry. You do not amortize the premium

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Definitions:

Title VII

A provision of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Disparate Impact

Practices in employment, housing, and other areas that adversely affect one group more significantly than another, even when there is no intentional discrimination.

Occupational Diseases

Illnesses resulting from the conditions or environment of a particular occupation.

Workers' Compensation System

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer.