Answer the following statements true (T) or false (F)
1. With subordinated debentures, payment of interest by a firm is required only when earnings are available.
2. The market price of a callable bond will not generally exceed its call price, except in the case of a convertible bond.
3. Floating-rate bonds are bonds that can be redeemed at par at the option of their holder either at specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt.
4. A bond issued by an American company that is denominated in Swiss Francs and sold in Switzerland would be an example of a foreign bond.
5. A foreign bond is a bond issued by a foreign corporation or government and is denominated in the investor's home currency and sold in the investor's home market.
6. A Eurobond is a bond issued by an international borrower and sold to investors in countries with currencies other than the country in which the bond is denominated.
7. A Eurobond bond is a bond denominated in Euros.
1. FALSE
2. TRUE
3. FALSE
4.TRUE
5. TRUE
6. TRUE
7. FALSE
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U.S. GAAP and IFRS permit firms to account for notes and bonds under which of the following approach(es)?
a. Amortized Cost. b. Fair Value. c. Amortized Cost and Future Value. d. Non-amortized cost and Fair Value. e. Amortized Cost and Fair Value.
The adjusting entry for wages was overlooked at the end of the accounting period. As a result of this error, the net income on the income statement will be understated
Indicate whether the statement is true or false
According to Jackson’s model of group tasks, ______ tasks are involved with reaching consensus on the best solution to a problem.
A. decision-making B. production C. intellective D. cognitive
The local convenience store makes personal sized pizzas. Currently, its process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and a variable cost of $1.75 per pizza
The owner is considering a different process that can make pizzas in two ways: completely cooked (as before), or partially cooked and then flash frozen for the customer to finish heating at home. This alternate process has a fixed cost of $24,000, but a lower variable cost (because much less energy is used in baking) of $1.25 per pizza. a. What is the crossover point between the existing process and the proposed process? b. If the owner expects to sell 9,000 pizzas, should he get the new oven?