Under normal conditions, which of the following would be most likely to increase the coupon rate required to enable a bond to be issued at par?
A. Adding a call provision.
B. The rating agencies change the bond's rating from Baa to Aaa.
C. Making the bond a first mortgage bond rather than a debenture.
D. Adding a sinking fund.
E. Adding additional restrictive covenants that limit management's actions.
Answer: A
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The first step in testing for impairment of goodwill is to
A) ?measure the fair value of the reporting unit and the fair value of the identifiable assets of the reporting unit. B) ?compare the fair value of the reporting unit with its book value, including goodwill. C) ?compare the fair value of the reporting unit with its book value, excluding goodwill. D) ?assess qualitative factors that indicate whether the fair value of the reporting unit is greater or less than its carrying value.
The entry to record the issuance of bonds at a discount on an interest payment date should include a
a. debit to Cash for the face amount of the bonds. b. debit to Cash for the face amount of the bonds plus the amount of discount. c. debit to Cash for the face amount of the bonds minus the amount of discount. d. credit to Cash for the face amount of the bonds.
Answer the following statements true (T) or false (F)
Engaging in constructive thought and natural reward strategies can ultimately lead to happiness by creating a positive psychological flow.
If Homer the employee commits a tort while at work, the employer:
A) will not be held liable. B) could be held liable. C) could never be sued for liability. D) could not be held accountable.