Basil Corporation issues for cash $1,000,000 of 8%, 10-year bonds, interest payable annually, at a time when themarket rate of interest is 7%. The straight-line method is adopted for the amortization of bond discount orpremium. Which of the following statements is true?
a. The carrying amount increases from its amount at issuance date to $1,000,000 at maturity.
b. The carrying amount decreases from its amount at issuance date to $1,000,000 at maturity.
c. The amount of annual interest paid to bondholders increases over the 10-year life of the bonds.
d. The amount of annual interest expense decreases as the bonds approach maturity.
b
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Companies with surplus cash will consider the needs of cash for:
A. issuing a special dividend to shareholders. B. buying back shares of their company stock. C. acquiring another company. D. all of these answer choices are considerations for using surplus cash.
When you stand closer than 18 inches from a signi?cant other to share a message, you are using which of the following?
A) personal distance B) social distance C) public distance D) intimate distance
The inner state of disequilibrium results from
A. Emotions. B. Values. C. Needs. D. Personality type.
Which of the following is true?
A) The two-bin system is an example of the order point system. B) Order quantities are fixed in the periodic review system. C) The safety stock does not depend upon the frequency of reorder. D) All of the above are true. E) None of the above is true.