True/False

Q1) An company in the USA has many branches over the world, their branch in French, seized by French government, is this a example of discontinuing item.

Q2) Extraordinary item and Discounting operation are present on the income statement net of any related tax effect.

Q3) The account discount bonds payable represents interest expense will be amortized over the life of the bonds. Answer:

Q4) Q When interest rate in the market go up, the price of bond issue(already issued) will go down.

Q5) Interest rates and bond prices have an inverse relationship; so when one goes up, the other goes down.

Q6) If the market interest rates go up after the bond has been issued, the price of the bond must go down above par, so that the bond gives a competitive yield to the current market.

Q7) Dividends pay by corporation to its shareholders, are tax deductible by a corporation, but interest on bond is not.

Q8) What is the definition of a line of credit? Credit limit, bank give amount If over credit line, transaction will be declined.

Q9) When bonds issued at discount, the corporation must pay the bond holders more at the maturity day than they received back on the date that they issued.

Q10) The FASB has not definitely list what is consider to be extraordinary items ,as result the determination extraordinary or not left up to the business management.