A Short-Term Investment in a U

question 34

Multiple Choice

A short-term investment in a U.S.Treasury bill costs $24,200 and will mature in six months at $25,000.Management intends to hold the investment until it matures.The entry to record receipt of cash at maturity is: (No prior entries were made to recognize revenue.)

• A)Cash 25,000 Short-Term Investments 24,200
• Interest Income 800
• B)Cash 25,000 Short-Term Investments 25,000
• C)Cash 24,200 Short-Term Investments 24,200
• D)Cash 25,000 Short-Term Investments 24,200
• Gain on Sale of Investments 800

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Definitions:

Observed

Observed, in statistics, refers to the actual data or values collected from experiments or studies, as opposed to expected or theoretical values.

Chi-square Value

A statistic used to measure the differences between observed and expected frequencies in categorical datasets, testing for independence or goodness of fit.

Observed

Refers to measured or witnessed information and data gathered through experimentation or research.

Expected

Refers to the predicted outcome or value in probability and statistics, often based on theoretical or historical data.