At the end of the accounting period,the owners of debt securities:
A)Must report the dividend income accrued on the debt securities.
B)Must retire the debt.
C)Must record a gain or loss on the interest income earned.
D)Must record a gain or loss on the dividend income earned.
E)Must record any interest earned on the debt securities during the period.

Question

Quizplus · Accepted Answer

Debt securities generate interest income, not dividends. At the end of the accounting period, owners must record any interest earned on these securities.

At the End of the Accounting Period,the Owners of Debt