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Which of the following statements is correct? Multiple Choice There are almost always small differences between the stated rate and the market rate when bonds
Which of the following statements is correct? Multiple Choice There are almost always small differences between the stated rate and the market rate when bonds are issued. The market rate of interest has no bearing on the selling price of the bonds. If the stated rate of interest on a bond is equal to the market rate of interest, then the bond will sell at a premium price. ooo The market rate of interest refers to the interest rate that the bond-issuing company promises to pay the bondholders. A stock dividend: Multiple Choice 0 will reduce Retained Earnings similar to a cash dividend. 0 will not change any of the accounts within stockholders' equity. 0 is accounted for like a stock split. 0 will reduce stockholders' equity similar to a cash dividend. On the date of record for a dividend, the company: Multiple Choice 0 debits Dividends and credits Dividends Payable for the amount of the dividend. 0 establishes who will receive the dividend payment. 0 debits Dividends Payable and credits Cash for the dividend amount. 0 debits Dividend Expense and credits Cash for the dividend amount
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