5. A company issued eight-year, 5% bonds with a par value of $450,000. The company received proceeds for $373,745. Interest is paid semiannually. The amount of premium amortized for the first semiannual interest period, assuming straight-line bond amortization is: a. $2,698 b. $23.745 373.145. C. $8.750 d. $9.344 e. $1,484 B. A company issues 8%, 20 year bonds with a par value of $500,000. The current market face for bonds is 8%. The amount of interest owed to the bondholders for each semi-annual interest payment is: a. $40,000 b. $0 c. $20,000 d. $800,000 e. $400,000 7. The purposes of financial statement analysis include all of the following except: a. Providing information to improve efficiency and effectiveness b. Providing information for managing and operating the company c. Helping external users assess performance d. Helping the board of directors monitor management's performance e. Assuring that the company will not be the subject of an IRS audit 8. Evaluation of company's performance can include comparison and/or assessment of all but which of the following: a. Past performance b. Current performance c. Current financial position d. Future performance and risk e. External user needs and demands 9. The building blocks of financial statement analysis do not include: a. Industry analysis b. Solvency c. Profitability d. Market prospects e. Liquidity and efficiency 10. Financial reporting refers to: a. The application of analytical tools to general-purpose financial statements b. The communication of financial information useful for decision making c. General-purpose financial statements only d. Ratio analysis only e. Profitability Page 2 of 6