Recording Interest Earned on an Investment Is an Example of Which

question 80

Multiple Choice

Recording interest earned on an investment is an example of which type of adjusting journal entry?

• A)Accrual entry.
• B)Deferral entry.
• C)Closing entry.
• D)Correcting entry.

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Definitions:

Initial Margin

The upfront collateral required to open a position in the futures or derivatives market.

Shares

Units of ownership interest in a corporation or financial asset, representing a portion of the company's capital.

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin.

Purchase GM Stock

The action of buying shares in General Motors Company, an American multinational corporation that designs, manufactures, markets, and distributes vehicles and vehicle parts.