Q1: The current value of a future sum of money or stream of cash flows given a specified rate of return is known as _____.

A) future value

B) present value

C) future value annuity

D) present value annuity

Q2: The entry to record the first interest payment and the related amortization for bonds issued at a discount includes a_____.

1. debit to Discount on Bonds Payable
2. credit to Discount on Bonds Payable
3. credit to Interest Expense
4. debit to Cash