If a Bond's Interest Period Does Not Coincide with the Issuing

question 99

True/False

If a bond's interest period does not coincide with the issuing company's accounting period,an adjusting entry is necessary to recognize bond interest expense accruing since the most recent interest payment.

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Definitions:

Statement of Stockholders' Equity

A financial statement that outlines the changes in the equity section of the balance sheet during a specific period, including investments by and distributions to shareholders.

End-of-period Spreadsheet

A reporting tool used in accounting to compile all balances from ledgers, facilitating the preparation of financial statements.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure accuracy in the financial statements.

Closing Entries

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