The carrying value of a bond issued at a premium:
A. decreases by equal amounts each year if effective interest amortization is used.
B. decreases by equal amounts each year if straight-line amortization is used and decreases by increasing amounts each year if effective interest amortization is used.
C. decreases by equal amounts each year if straight-line amortization is used.
D. decreases by larger and larger amounts each year if effective interest amortization is used.
Answer: B
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Which of the following categories on a statement of cash flows is used to report the cash flow effects of transactions involving a company's stock?
a. Operating Activities b. Investing Activities c. Financing Activities d. Profit Activities
Transportation-in is
a. an operating expense. b. part of purchases. c. added to transportation-out as part of the calculation of cost of goods sold. d. part of cost of goods purchased.
Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7200 direct labor-hours will be required in August. The variable overhead rate is $1.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,380 per month, which includes depreciation of $8970. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
A. $104,370 B. $113,340 C. $12,960 D. $91,410
Which of the following is NOT included within the Code definition of merchantability?
a. Reasonably fit for the ordinary purposes for which the goods are used. b. Pass without objection in the trade under the contract description. c. In the case of fungible goods that they be of a quality that exceeds the description and be above average. d. Be of fair, average quality.