H9.

1. Which of the following steps comes last when amortizing premiums on long-term debt?

a. Determine book value of the bond

b. Make the journal entry

c. Calculate interest expense

d. Update the premium account balance

2. Which of the following is one of the reasons why long-term debt is considered such an important part of financing?

a. It provides access to a larger capital market (vs. the equity markets).

b. It provides an opportunity for companies to emphasize financing needs.

c. It provides opportunities for additional funding from owners.

d. It provides important information about company liquidity.