Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,000. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption?
A) $10,000 loss
B) $25,000 loss
C) $25,000 gain
D) $10,000 gain
D
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Consider Figure 6.3. Of the quota-induced change in Iraqi consumer surplus, the amount of the change in Iraq's consumer surplus that is transferred to other sectors of Iraq's economy is captured by the United States as
a. tax revenue. b. export revenue. c. producer surplus. d. consumer surplus.
Charmin toilet paper would be classified as which type of product?
A. Convenience B. Shopping C. Specialty D. Unsought E. Industrial service
On July 9, Mifflin Company receives an $8,500, 90-day, 8% note from customer Payton Summers as payment on account. What entry should be made on July 9 to record receipt of the note?
A. Debit Notes Receivable $8,500; credit Accounts Receivable $8,500. B. Debit Notes Receivable $8,670; credit Sales $8,670. C. Debit Accounts Receivable $8,500; credit Sales $8,500. D. Debit Notes Receivable $8,500; credit Sales $8,500. E. Debit Notes Receivable $8,725; credit Interest Revenue $225; credit Accounts Receivable $8,500.
We can identify the cash costs and cash inflows to a company that will result from a project. These could be called "direct inflows and outflows," and the net difference is the direct net cash flow. If there are other costs and benefits that do not flow from or to the firm, but to other parties, these are called externalities, and they need not be considered as a part of the capital budgeting analysis.
Answer the following statement true (T) or false (F)