Proper reporting of revenues and expenses in a period is due to ...

[vicotolentino]

Proper reporting of revenues and expenses in a period is due to the accounting period concept.
 a. True
  b. False
 
   Indicate whether the statement is true or false

Question 2

A government defeased in substance 10 million of old Enterprise Fund bonds by paying 12 million into a qualifying trust for that purpose. The refunded bonds had an unamortized premium of 200,000 and bond issue costs of 50,000 .
 
  Resources to finance the defeasance of the old bonds were provided by issuing 12,000,000 of new bonds issued at par. What amount of deferred interest expense adjustment should the government report?
  A. 0.
  B. 1,850,000 debit.
  C. 1,800,000 debit.
  D. 1,850,000 credit.

[Anna]

Answer to Question 1

True

Answer to Question 2

B