When a company holds U.S.Treasury bills,it would debit Interest Income and credit Short-Term Investments at the end of the accounting period (assuming it is prior to the T-bills' maturity).

Question

Quizplus · Accepted Answer

Interest income is recorded when earned, not when the investment is made. At the end of the period, interest receivable would be debited and interest income credited, not short-term investments.

When a Company Holds U