Multiple Choice
A company receives $102,000 when it issues a bond with a face value of $100,000 and a stated interest rate of 7%.Which of the following statements is true?
A) The annual interest expense is $7,000.
B) The market interest rate is 7%.
C) A contra account to bonds payable is not needed.
D) The carrying value of the bonds will be $100,000 at maturity.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Contingent liabilities must be recorded if:<br>A)the future
Q9: You are considering buying a bond from
Q12: A company has bonds outstanding with a
Q15: Use the information above to answer the
Q16: Which of the following statements regarding bonds
Q24: Some bonds mature in installments.If a bond
Q40: The annual interest payment on bonds:<br>A)increases over
Q43: A corporate bond with a face value
Q136: Some bonds allow the issuing company to
Q144: Which of the following statements best describes