Why would a corporation issue bonds payable instead of issuing stock?
A) Debt is a less expensive source of capital than stock.
B) Borrowing by issuing bonds payable carries no risk to the company.
C) Debt affects the percentage of ownership of the corporation by the stockholders.
D) Debt does not have to be shown on the balance sheet.
A
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The result of using the effective interest method of amortization of discount on bonds is that the
a. interest expense for each amortization period is constant. b. effective interest rate for each amortization period is constant. c. amount of interest expense decreases each period. d. cash interest payment is greater than the interest expense.
The main disadvantage of direct investment is that the partners might disagree over investment, marketing, or other policies
Indicate whether the statement is true or false
Queen Corporation borrowed $750,000 during Year 3 from its bank under a long-term borrowing arrangement. The statement of cash flows classifies the transaction as a(n)
a. operating activity. b. investing activity. c. financing activity. d. exchange transaction. e. lending activity.
It's sometimes all right to have a separate page for each animation
a. true b. false