Indicate whether each of the following statements about bonds is true or false. ________ a) The carrying value of a bond increases over time if the bond was issued at a premium.________ b) At the end of the term of the bonds, the carrying value of a bond issue is equal to the issue price.________ c) If bonds are sold below face value, the difference between the issue price and the face value is called the bond discount.________ d) The payment of interest is an operating activity on the statement of cash flows.________ e) The issuance of bonds does not appear on the statement of cash flows.

What will be an ideal response?


a) F b) F c) T d) T e) F

Business

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