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Using the Amortization Procedure, a Holder of the Debt Securities

Question 52

Multiple Choice

Using the amortization procedure, a holder of the debt securities (the investor) records interest revenue each period by debiting the _____ and crediting _____ which after closing entries increases _____ The bonds are classified as held to maturity.


A) Marketable Securities account; Interest Revenue; Retained Earnings
B) Interest Revenue; Retained Earnings; Marketable Securities account
C) Retained Earnings; Marketable Securities account; Interest Revenue
D) Marketable Securities account; Interest Expense; Retained Earnings
E) Common Stock account; Interest Expense; Retained Earnings

Correct Answer:

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