Regarding Accounting Entries for Debt Securities,which of the Following Is

question 6

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 Long-term Securities-Held-to-Maturity.
• 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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Definitions:

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others, enabling more efficient international trade.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors, using the same amount of resources.

Trade Flows

The movement of goods and services across international borders, influenced by tariffs, trade agreements, and global economic conditions.

Free

Pertaining to the availability of a good, service, or resource without the requirement of payment or exchange.