U.S. GAAP and IFRS account for notes and nonconvertible bonds payable similarly.Which of the following is/are not true?
a. Firms initially record long-term notes and bonds at their issue price, the present value of the future contractual cash flows discounted at the market interest rate for the bonds at the time of issue.
b. The market interest rate at the time of issue is the rate that discounts the contractual cash flows to the initial issue price.
c. If the market interest rate equals the coupon rate for the bonds, the firm will issue the bonds for face value.
d. If the market interest rate exceeds the coupon rate, the firm will issue the bonds for less than face value.
e. If the coupon rate exceeds the market interest rate, the firm will issue the bonds for less than face value.
E
You might also like to view...
If consumers are being manipulated by advertising, what are some key ethical implications?
A. If consumers pursue trivial and contrived products, market exchanges only appear to increase overall satisfaction. B. Individual autonomy, the central element of Kantian respect for persons, would be violated by the creation of wants. C. The economy of the affluent society is contrived and distorted. D. Consumer autonomy is violated by advertising's ability to create nonautonomous desires. E. All of the answers are correct. F. None of the answers are correct.
The controller for Tires and More, Inc has recorded the following transactions during the month: the company was established by selling 10,000 shares of stock to the public for $20,000 on the 1st of the month; the company recorded $36,000 of revenue for tires and services provided during the month; and expenses of $22,000 were recorded for the month. What is the balance of Stockholders' Equity at
the end of the month, and is the balance a debit or a credit? A) $34,000 debit. B) $34,000 credit. C) $20,000 credit. D) $6,000 debit.
When stock is issued for noncash assets or services, the dollar amount to be recorded for this exchange is determined by the
A) treasurer of the corporation. B) par value of the stock. C) market value of the stock or the market value of the consideration received, whichever is greater. D) market value of the stock or the market value of the consideration received when the market value of the stock cannot be determined.
During 2014, Robby, Inc incurred the following costs: Research and development services performed by Tronic Company for Robby ................................ $125,000 Testing for evaluation of new products ............... 150,000 Laboratory research aimed at discovery of new knowledge 187,500 In its income statement for the year ended December 31 . 2014, Robby should report research and
development expense of a. $462,500. b. $312,500. c. $150,000. d. $125,000.