The financial statements resulting from combining parent and subsidiary statements are referred to as consolidated financial statements. Comprehensive income consists of all changes in stockholders' equity during the accounting period except those resulting from dividends and stockholders' investments. 14. Although marketable securities may be retained for several years, they continue to be classified as temporary investments, provided that they are readily marketable and can be sold for cash at any time. 15 MULTIPLE CHOICE 1. The market interest rate for a bond is also called the: a. Stated interest rate. b. Straight-line rate. c. Contract interest rate. d. Effective interest rate. 2.Debenture bonds are: Issued on the general credit of the corporation and do not pledge specific assets as collateral. a. b. Bonds that have a single maturity date c. Issued only by the federal government. d. Bonds secured by specific assets of the issuing corporation 3.When the market rate of interest on bonds is higher than the contract rate then the bonds will sell at: a. A premium. b. A discount. c. Their maturity value. d. Their face value. The jounal entry a company records for the issuance of bonds when the contract rate is less than the market rate would be: a. Debit bonds payable, credit cash b. Debit cash, credit bonds payable. c. Debit cash, credit premium on bonds payable, credit bonds payable. Debit cash and discount on bonds payable, credit bonds payable. d