When a bond issue sale price is higher than the bond face amount, the effective interest rate is:

a.Lower than the stated rate

b.Higher than the stated rate

c.Equal to the stated rate

d.Effective interest is not applicable to bonds

Mountains Inc. is a defendant in a current lawsuit that it estimates has reasonably possible loss of $285,000.The loss contingency should be:

a.Disclosed and accrued as a liability

b.Disclosed but not accrued as liability

c.Not disclosed, but accrued as a liability

d.Not disclosed and not accrued as a liability

Paid-in capital in excess of par:

a.Increases stockholders' equity

b.Decreases stockholders' equity

c.Is reported on the balance sheet as an investment

d.Is reported on the balance sheet as a long-term liability