Call provisions on corporate bonds are generally included to protect the issuer against large increases in interest rates. They affect the actual maturity of the bond but not its price.?
Answer the following statement true (T) or false (F)
False
Call provisions allow firms to refinance debt, much as individuals might refinance mortgages on their houses: when interest rates decline, firms can recall (refund) high-cost debt that is outstanding and replace it with new, lower-cost debt. See 6-1: Characteristics and Types of Debt
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Why are performance problems best handled in face-to-face meetings?
A) The opportunity to read nonverbal signals is strong B) Face-to-face meetings allow for discussion C) A face-to-face meeting is less embarrassing for the person with the performance problem D) Face-to-face meetings take less planning that written communications E) A message is sent to those who see the meeting taking place that positive action is occurring, thus improving the moral of the entire department.
Financial accounting provides information to all users, while the main focus for managerial accounting is to provide information to the management
Indicate whether the statement is true or false
Under the UPA, submission of a partnership claim to arbitration requires the consent of all the partners
a. True b. False Indicate whether the statement is true or false
[The following information applies to the questions displayed below.]On January 1 Year 1, Gordon Corporation issued bonds with a face value of $70,000, a stated rate of interest of 6%, and a 5-year term to maturity. The bonds were issued at 98. Interest is payable in cash on December 31 each year. Gordon uses the straight-line method to amortize bond discounts and premiums.On December 31, Year 5, Gordon Corporation makes the final entry to record interest and amortization. Immediately after that, Gordon pays off the bonds as scheduled. Which of the following shows the effect of the bond payoff on the elements of the financial statements? Assets=Liab.+Stk.EquityRev.?Exp.=Net Inc.Stmt. ofCash
FlowsA.(68,600)=(68,600)+NANA?NA=NA(68,600)FAB.(68,600)=(68,600)+NANA?NA=NA(68,600)OAC.(70,000)=(68,600)+(1,400)NA?1,400=(1,400)(68,600)FA/(1,400)OAD.(70,000)=(70,000)+NANA?NA=NA(68,600)FA/(1,400)OA A. Option A B. Option B C. Option C D. Option D