Short Answer
Indicate whether each of the following statements about bonds is true or false.
_____ a)The carrying value of a bond increases over time if the bond was issued at a premium.
_____ b)At the end of the term of the bonds,the carrying value of a bond issue is equal to the issue price.
_____ c)If bonds are sold below face value,the difference between the issue price and the face value is called the bond discount.
_____ d)The payment of interest is an operating activity on the statement of cash flows.
_____ e)The issuance of bonds does not appear on the statement of cash flows.
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a)False b)...View Answer
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