Asked by Carlos Paredes Monreal on May 18, 2024

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When recording bond interest Interest Receivable is reported as a fixed asset in the balance sheet.

Interest Receivable

The amount of interest income that has been earned but not yet received in cash.

Fixed Asset

A long-term tangible piece of property or equipment that a business uses in its operations to generate income.

Balance Sheet

A financial report that outlines a corporation's assets, liabilities, and owner's equity at a particular moment.

  • Acquire knowledge on how dividends and interest are accounted for in investment income.
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EM
Ernestine MayesMay 21, 2024
Final Answer :
False
Explanation :
Interest Receivable is actually reported as a current asset in the balance sheet, not a fixed asset.