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:

Fixed-interval Schedules

A type of reinforcement schedule in operant conditioning where rewards are given after a specific time interval has passed.

Pattern of Responding

The typical manner in which an individual reacts to a stimulus or situation, often studied in psychology to understand behavior.

Studying

The act of dedicating time and attention to gaining knowledge on a subject, typically involving reading and research.

Negative Reinforcement

A motivation or feedback mechanism that strengthens a behavior because an unpleasant condition is removed or it avoids a negative situation.