What is the effect of the amortization of Discount on Bonds Payable on Interest Expense and the Discount on Bonds Payable account, respectively? Select one: O a. Increase, Increase X O b. Decrease, Decrease c. Increase, Decrease O d. Decrease, Increase The correct answer is: Increase, Decrease A company must exclude short-term obligations from current liabilities if which condition(s) is (are) met? Select one: a. Intent to refinance and ability to refinance O b. Intent to refinance, but not ability to refinance O c. Ability to refinance, but not intent to refinance O d. Neither intent to refinance, nor ability to refinance * The correct answer is: Intent to refinance and ability to refinance On January 1, 2014, Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1, 2024. The bonds were issued for $3,385 to yield 9%. Bear Cove uses the effective-interest method of amortizing the bond premium. Interest is payable annually on January 1. The 12/31/15 bond carrying value is approximately: Select one: O a. $3,385 O b. $3,080 c. $3,332 O O O d. $3,438 X e. $3,360 The correct answer is: $3,332 On 1/1/17, Traverse Company sold 100 components at $700 each. All sales were cash sales. Estimated total cost servicing the components was $1,100 each year of the five-year warranty. Traverse spent $1,500 servicing the components in 2017 and $500 servicing components in 2018. This is considered an "assurance-type" warranty; Traverse uses the Expense Warranty approach. What is 2018 Warranty Expense? Select one: O a. $0 O b. $4,000 O c. $1,500 O d. $5,500 * O e. $4,900 The correct answer is: $0