True or False:

1) The principal of a loan does not include any interest charges.

2) Operating cycles are generally longer than a year.

3) At the date of maturity, the carrying value of a bond should always be equal to the face value.

4) If the market rate exceeds the stated interest rate, a bond will sell at a premium.

5) Bonds allow a company to borrow large sums of money from many different investors.

6) The method of bond amortization that results in varying amounts of amortization each period is the straight-line amortization method.

7) Bonds that are backed by a company's assets are called secured bonds.

8) The gross pay for all employees is credited to Wages Payable.

9) When a company issues bonds that include no periodic interest payments, the bonds are called zero-coupon bonds.

10) The quick ratio is similar to the current ratio in that it is also a measure used to evaluate whether a company can pay its current liabilities.