Endeavor Company issued 20-year bonds with a coupon rate of 6% when the market rate of interest was 9%. This means that the bonds were issued
a. at a premium.
b. at a discount.
c. at the face value.
d. with an additional 3 years of interest.
b
You might also like to view...
The accrual basis of accounting offers a direct explanation of why a firm's liquidity, as reported on the balance sheet, has improved or worsened
a. True b. False Indicate whether the statement is true or false
All of the data for the statement of retained earnings is taken from the Balance Sheet columns of the work sheet
a. True b. False Indicate whether the statement is true or false
When a trading debt investment is disposed of, ________.
A) an unrealized holding loss is reported on the income statement B) the Trading Debt Investments account is debited C) the amount of gain or loss is calculated as the difference between the cash received and the cost of the debt investment disposed of. D) the fair value adjustment is used in determining the calculation of the gain or loss
The state legislature is currently debating a bill that, if passed, would require the Roberts Company to go out of business. Which of the following principles or assumptions related to the preparation of Roberts financial statements is most directly affected by this impending vote of the legislature?
A. going concern B. verifiability principle C. entity concept D. materiality concept