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1) The collection of accounts receivable is recorded by a:
A)Debit to Cash and a debit to Accounts Receivable.B)Credit to Cash and a credit to Accounts Receivable.C)Debit to Cash and a credit to Accounts Receivable.D)Credit to Cash and a debit to Accounts Receivable.2) In February of each year, the Carlton Hotel holds a very popular wine tasting event. Tickets must be ordered and paid for in advance, and are typically sold out by November of the preceding year. The realization principle indicates that the revenue from these ticket sales should be recognized in the period in which the:
A)Order is placed.B)Wine tasting event is held.C)Payments are received.D)Expenses associated with the wine tasting are paid in full.
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Will AI report a gain or will it report a loss when adjusting the bonds to fair value? If the change in fair value is attributable to a change in the interest rate, did the rate increase or decrease?
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