The lower-of-cost-or-market rule demonstrates accounting conservatism in action

Debra Technologies invests $68,000 to acquire $68,000 face value, 10%, five-year corporate bonds on December 31, 2010

The bonds will mature on December 31, 2015. The bonds pay interest semiannually on December 31 and June 30 every year until maturity. Assume Debra Technologies uses a calendar year. Based on the information provided, which of the following will be included in the journal entry for the transaction on December 31, 2014? A) a credit to Interest Revenue for $6,800 B) a debit to Interest Revenue for $6,800 C) a credit to Interest Revenue for $3,400 D) a debit to Interest Revenue for $3,400

Thinking of money as a motivator, expectancy theory mainly suggests that

a. money plays no part in motivating employee behaviour. b. money is the only extrinsic motivator. c. individuals need to value the reward, whether it is money or something else, or it won't be motivational. d. individuals care little about the value of the reward but appreciate the gesture. e. the mere suggestion of more money will motivate employees.