When bonds are issued at face value, ________
A) the amount of cash received depends on the amount of bond discount or premium
B) for each interest payment, the amount of Interest Expense equals the amount of cash paid
C) for each interest payment, the amount of Interest Expense depends on the amortization of the bond discount or premium
D) the journal entry to record the issuance of the bonds includes a debit to the Bonds Payable account
B
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The natural progression in items from one statement to another and preparation of financial statements is best represented by the following order:
a. Balance sheet and statement of cash flows > statement of retained earnings > income statement b. Balance sheet and statement of cash flows > income statement > statement of retained earnings. c. Statement of retained earnings > income statement > balance sheet and statement of cash flows d. Income statement > statement of retained earnings > balance sheet and statement of cash flows
The book value of one share of callable preferred stock is equal to the call value of the preferred share minus any dividends in arrears
Indicate whether the statement is true or false
A business that is concerned solely with the financial implications of alternate courses of actions
is applying which theory of the social responsibility of business? A) Moral minimum B) Maximizing profits C) Stakeholder interest D) Corporate citizenship
When a company has long-term investments, it means they ______.
a. have cash, stocks, bonds, and real estate that has been on their books longer than one year b. should be selling them soon so they can become short-term profit c. have more cash than they need and they are wasting it on long-term investments d. are going for a bank loan