Which of the following statements about bond accounting under the effective interest method is correct?
a. The cash interest paid is calculated as the bond face value × the effective rate.
b. The interest expense is calculated as the carrying value × the effective rate.
c. The difference between the cash interest paid and the interest expense is added to the carrying value of the bonds if bonds were sold at a premium.
d. The difference between the interest expense and the interest paid is deducted from the carrying value of the bonds if bonds were sold at a discount.
b
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Which of the following statements is true?
A. Partners are employees of the partnership. B. Salary allowances usually reflect the relative value of services provided by partners. C. Interest allowances are expenses. D. Salary allowances are expenses. E. Salaries to partners are expenses on the partnership income statement.
On March 1, a business paid $3,600 for a twelve-month liability insurance policy. On April 1, the business entered into a two-year rental contract for equipment at a total cost of $18,000 . Determine the following amounts: (a) insurance expense for the
month of March (b) balance in prepaid insurance as of March 31 (c) equipment rent expense for the month of April (d) balance in prepaid equipment rental as of April 30
Trademarks are protected from use on noncompeting goods by
a. the Federal Trademark Dilution Act. b. the America Invents Act. c. the Anticybersquatting Consumer Protection Act. d. the Copyright Act.
Considering the service desired and the relative cost of the item, which of the following would you
most likely ship by truck? A) regular shipments of cut flowers B) regular shipments of grain C) regular shipments of iron ore D) A and B above E) B and C above