When bonds are sold at face value between interest dates,the result is a debit to the Cash account that
A)equals face value.
B)depends on the circumstances.
C)is less than face value.
D)exceeds face value.

Question

Quizplus · Accepted Answer

When bonds are sold between interest dates, the buyer pays the seller the accrued interest in addition to the face value, resulting in a cash debit that exceeds the face value.

When Bonds Are Sold at Face Value Between Interest Dates,the