If market interest rates are higher than the rate offered on, Accounting Basics

Assignment Help:

 

1. If market interest rates are higher than the rate offered on the bonds being sold, they will be sold at:
A. a premium.

B. a discount.

C. face value.

D. a loss.


2. When bonds are issued at a premium, the bond premium:
A. reduces the amount of interest expense over the life of the bonds.

B. increases the amount of interest expense over the life of the bonds.

C. does not change the amount of interest expense over the life of the bonds.

D. is charged to interest expense when the bond is issued.


3. If bonds are issued for a price below their face value, the bond discount should be:
A. charged to expense on the date the bonds are issued.

B. amortized over the life of the bond issue.

C. shown as an addition to Bonds Payable in the Long-Term Liabilities section of the balance sheet.

D. shown as a current liability on the balance sheet.

 


Related Discussions:- If market interest rates are higher than the rate offered on

Interest calculations, Calculate the amount of interest for each of the f...

Calculate the amount of interest for each of the following independent situations (assume 365 days per year):             a)

What is federal unemployment tax, What is Federal unemployment tax Fed...

What is Federal unemployment tax Federal unemployment tax (FUTA) requires the payment of taxes to provide benefits for workers during periods of temporary unemployment. This

Assignment, o depreciation on the building has been recorded in 2016. Depre...

o depreciation on the building has been recorded in 2016. Depreciation on the building is based on Double-Declining Balance. It was purchased on 1/1/15 and has an estimated useful

Prepaid rent- factory was amortized, Create an adjusted trial balance & jou...

Create an adjusted trial balance & journal entries Bank charges of $932.70 were not recorded in the books for 2014. These were credit card fees charged by the bank for Edwards

Solution, The trial balance of Bellemy Fashion Center contained the followi...

The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.

Explain accounts payable, Q. Explain Accounts payable? Accounts payable...

Q. Explain Accounts payable? Accounts payable are amounts owed to suppliers meant for goods or services purchased on credit. Accounts payable are usually due in 30 or 60 days a

Why we need book value, Q. Why we need book value? Book value -- total ...

Q. Why we need book value? Book value -- total assets minus total liabilities. Book value also meansvalue of an asset as recorded on the company's financial reports or books. B

American society of women accountants - aswa, It is a national organization...

It is a national organization of female accountants in America that plans to further the interests of women in the accounting career. The American Society of Women Accountants (ASW

Journalizing payroll transactions, journalizing payroll transactions, for K...

journalizing payroll transactions, for Keller Systems;Inc, paid cash for april's payroll tax liability. withheld taxes from april payrolls; employee income tax,$532.00; social se

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd