1) Which of the following is a financial instrument used by an entity to borrow money? a) Bond b) Check c) Note Receivable

2) Camp Corporation issues bonds with a stated interest rate of 8%. The current market rate interest is 10% These bonds likely sold at: a) per value b) a discount c) none of the above

3)A company issues a $2,000 6% note payable due un 4 months. How much interest will the company pay for this note? a) $0 b)$30 c)$40

4)Which of the following statements is true? i. A note payable can be classified as a current or long-term liability. ii. Taxes payable are never current liabilities. a) i only b) ii only c) both i and ii

5) When will long-term debt be considered a current liability? a) never b) always c) whatever portion of the debt is due within one year of the balance sheet data will be considered current