Question

"Which of the following statements are TRUE? I Accrued interest is added to the buyer's confirmation II Accrued interest is added to the seller's confirmation III Accrued interest is included in the buyer's cost basis IV Accrued interest is included in the seller's sale proceeds"

Answer 1

Answer: I. Accrued interest is added to the buyer's confirmation

II. Accrued interest is added to the seller's confirmation

Step-by-step explanation:

Accrued interest is the amount of interest incurred on a loan at a particular date which has not been paid out yet. To the lender, it's a form of revenue and to the borrower, it's an expense.

Therefore, an accrued interest is added to the buyer's confirmation and also added to the seller's confirmation.