1. When a company purchases another company's bonds as an investment, an account called investments- XXXX is used. What type of an account and normal balance does this investment account have? a....

a. Asset with a debit balance

b. Asset with a credit balance

c. liability with a debit balance

d. liability with a credit balance

2.  What does the word accrued mean when talking about accrued interest?

a. The interest has not been earned, but it has been received

b. The interest has been earned, but it has not been received

c. The interest has not been earned nor received

d. The interest is being deferred