Regarding Accounting Entries for Debt Securities, Which of the Following

question 51

Multiple Choice

Regarding accounting entries for debt securities, which of the following is true?

• A) The receipt of interest revenue is recorded with a debit to Interest Revenue and a credit to Cash.
• B) Investments in debt securities are recorded at cost, including any brokerage fees paid.
• C) The receipt of interest revenue is recorded with a debit to Cash and a credit to Held-to-Maturity Debt Investments.
• D) Debt securities disposed of at maturity are recorded with a debit to the Short-term or Long-term Investments account and a credit to Cash.

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