When the cost of a long-term debt security is different from the maturity value, the difference is amortized over the remaining life of the security. True or False True False

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Answer both pictures please true or false
When the cost of a long-term debt security is different from the maturity value, the difference is amortized over the remaining life of
the security.
True or False
True
False
Transcribed Image Text:When the cost of a long-term debt security is different from the maturity value, the difference is amortized over the remaining life of the security. True or False True False
A company received dividends of $0.50 per share on 1,000 shares of common stock it holds. It is presumed that this equity
investment has insignificant influence. The journal entry to record this dividend receipt would consist of a debit to Cash for $500
and credit to Dividend Revenue for $500.
True or False
True
False
Transcribed Image Text:A company received dividends of $0.50 per share on 1,000 shares of common stock it holds. It is presumed that this equity investment has insignificant influence. The journal entry to record this dividend receipt would consist of a debit to Cash for $500 and credit to Dividend Revenue for $500. True or False True False
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