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Indicate whether the statement is true or false


TRUE

Business

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In Year 7, Nortel Manufacturing issued $100,000 semi-annual 12% bonds at par. Interest is payable on July 1 and January 1 . What entry is necessary at December 31, Year 9?

a. Interest Expense 6,000 Cash 6,000 b. Interest Expense 6,000 Bonds Payable 6,000 c. Interest Expense 6,000 Interest Payable 6,000 d. Interest Expense 12,000 Interest Payable 12,000 e. Cash 6,000 Interest Payable 6,000

Business

If a corporation is liquidated, preferred stockholders are paid before the creditors and before the common stockholders

Indicate whether the statement is true or false

Business

Suppose a firm evaluates four independent investments using only capital budgeting techniques that consider the time value of money. Which of the following statements is correct?

A. The company should purchase the one project that has the highest internal rate of return (IRR). B. All of the capital budgeting techniques the company uses should provide the same accept/reject decisions. C. The company should purchase the project that has the shortest traditional payback period (PB). D. The company should purchase the one project that has the highest net present value (NPV); the other projects should not be purchased, even if their NPVs are positive. E. The capital budgeting techniques used by the company will always agree on which project should be ranked as the best one to purchase.

Business

Owen uses the Internet to defraud Prairie Valley Credit Union. He is found guilty of wire fraud. He can be punished by

a. imprisonment for not more than one year. b. imprisonment for up to thirty years and fines of up to $1 million. c. fines for not more than $50,000. d. death.

Business