For accounting purposes, stated value is treated the same way as par value

Indicate whether the statement is true or false


T

Business

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Answer the following statements true (T) or false (F)

1. On July 1, 2018, Jordie Equipment Dealer issued $600,000 of 9% bonds payable that mature in seven years. These bonds were issued at face value and pay interest each June 30 and December 31. Each semiannual interest payment is $27,000. 2. On July 1, 2018, Shannon Equipment Dealer issued $590,000 of 6% bonds payable that mature in seven years. These bonds were issued at face value and pay interest each June 30 and December 31. Each semiannual interest payment will be higher than the interest expense. 3. The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on Bonds Payable account is a debit of $2,650. The bond's carrying amount is $64,350. 4. The balance in the Bonds Payable account is a credit of $77,000. The balance in the Discount on Bonds Payable is a debit of $3,600. The balance sheet will report the bond balance as $80,600. 5. Discount on Bonds Payable is additional Interest Expense of the company that issues the bond.

Business

Under the equity method of accounting for equity investments, the receipt of a dividend from the investee

a. increases the income of the investor. b. increases the net book value of the investment. c. decreases the book value of the investment. d. None of these choices.

Business

An issuer is permitted to assert a due diligence defense against the imposition of Section 11 liability

Indicate whether the statement is true or false

Business

Which of the following is the most accurate statement about social networking among cultures?

A) Social networking tends to make introverts more extroverted. B) In real life and online, we instinctively tend to gravitate toward people who seem similar to us. C) The majority of networking experts agree that social media offer limited intercultural engagement. D) Online environments make social presence and interpersonal contact easier for all people.

Business