Question
The market rate of interest for a bond issue which sells for more than its face value is a. less than the interest rate stated
The market rate of interest for a bond issue which sells for more than its face value is
| a. | less than the interest rate stated on the bond.
| |
| b. | higher than the interest rate stated on the bond.
| |
| c. | independent of the interest rate stated on the bond.
| |
| d. | equal to the interest rate stated on the bond.
|
If there is a gain on bonds redeemed early, the
| a. | bonds carrying value was greater than the redemption price.
| |
| b. | loss is debited directly to Retained Earnings. | |
| c. | loss is debited to Interest Expense, as a cost of financing. | |
| d. | bonds carrying value was less than the redemption price.
|
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
