An Adjustment Must Be Made at the End of an Accounting

question 181

True/False

An adjustment must be made at the end of an accounting period to accrue the interest expense on bonds payable and to amortize any related premium or discount from the last interest payment date to the end of the fiscal year.

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Definitions:

Target Balance

A predetermined amount of money that a company or individual aims to have in an account at any given time.

Minimum Balance

The least amount of money that a bank requires a customer to have in an account to qualify for specific services or to avoid certain fees.

BAT Model

BAT Model stands for the Behavioral Analysis and Therapy Model, which is typically related to psychology and behavioral sciences, not a common term in finance and hence might be mistaken or the context misidentified.

Cash Outflows

Money that exits a company, typically as a result of operational expenses, investment activities, and financing.