A company has an investment in 9% bonds with a par value of $100,000 that pays interest on October 1 and April 1. The amount of interest accrued on December 31 (the company's year-end) would be:
A. $4,500.
B. $1,500.
C. $2,250.
D. $9,000.
E. $750.
Answer: C
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The second category of question in the SPIN approach is called the ________ question.
A. problem B. preamble C. product D. personal-touch E. promotion
On July 1, Year 1, Village Bookstore, Inc. appropriated retained earnings in the amount of $36,000 for a future remodeling project in the basement of the bookstore. On June 30, Year 1, the balance of Retained Earnings was $82,800 and the Cash balance was $43,200. Which of the following answers shows the effect of the July 1 event on the financial statements? Stockholders' Equity Assets=Liab.+C. Stk.+Ret. Earn.+App.R.ERev.-Exp.=Net Inc.CashA.NA=NA+NA+(36,000)+36,000NA-NA=NA(36,000) FAB.(36,000)=NA+NA+(36,000)+NANA-NA=NA(36,000) FAC.NA=NA+NA+NA+NANA-NA=NANAD.NA=NA+NA+(36,000)+36,000NA-NA=NANA
A. Choice A B. Choice B C. Choice C D. Choice D
A business corporation is not an
A. entity created by law. B. organization that can exist perpetually. C. organization with certain rights and powers granted by statute. D. entity that is disregarded for income tax purposes.
The confidence index indicates
A) stock investors ' perceptions of risk in the economy. B) bond investors ' perceptions of risk in the economy. C) consumers' perceptions of risk in the economy. D) investors' trust in financial advisors.