Question
1. On March 31, 2020, if the balance in Bonds Payable is $3,000,000 and the balance in Unamortized Premium on Bonds Payable (Premium on Bonds
1. On March 31, 2020, if the balance in Bonds Payable is $3,000,000 and the balance in Unamortized Premium on Bonds Payable (Premium on Bonds Payable) is $100,000, what is the amount for the carrying value of the bonds at March 31, 2020?
| A. 3,100,000 | ||
| B. 3,000,000 | ||
| C. 2,900,000 | ||
| D. 100,000 | ||
| E. None of the above |
2. STATEMENT OF CASH FLOW: Company A has a net income of 1,000,000, depreciation of 500,000, a decrease in accounts receivable of 300,000, and an increase in accounts payable of 100,000. Using the indirect method, what is the amount for net cash flow from operating activities?
| A. 1,900,000 | ||
| B. 1,700,000 | ||
| C. 1,500,000 | ||
| D. 1,100,000 | ||
| E. None of the above |
3. In which comparison between the market rate and the stated rate are the bonds issued at a discount?
| A. Market rate 10% Stated rate 10% | ||
| B. Market rate 2% Stated rate 10% | ||
| C. Market rate 8% Stated rate 2% | ||
| D. None of the above |
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
