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CHAPTER 14 LONG-TERM LIABILITIES IFRS questions are available at the end of this chapter. TRUE-FALSE Conceptual Answer No. Description T 1. Bond interest payments. F 2. Debenture bonds. T 3. Definition of serial bonds. F 4. Market rate vs. coupon rate. F 5. Definition of stated interest rate. T 6. Stated rate and coupon rate. F 7. Amortization of premium and discount. F 8. Issuance of bonds. F 9. Interest paid vs. interest expense. T 10. Accounting for bond issue costs. T 11. Refunding of bond issue. F 12. Long-term notes payable. T 13. Implicit interest rate. T 14. Imputation and imputed interest rate. T 15. Off-balance-sheet financing. T 16. Debt to total assets ratio. F 17. Refinancing long-term debt. F 18. Times interest earned ratio. F *19. Loss recognized on impaired loan. F *20. Gain/loss in troubled debt restructuring. MULTIPLE CHOICE Conceptual Answer No. Description a 21. Liability identification. a 22. Bond terms. b 23. Definition of "debenture bonds." a P 24. Definition of bearer bonds. d S 25. Definition of income bonds. a S 26. Effective-interest vs. straight-line method. d S 27. Interest rate of the bond indenture. d 28. Rate of interest earned by the bondholders. d 29. Calculating the issue price of bonds. d 30. Calculating the issue price of bonds. b 31. Premium and interest rates. a 32. Interest and discount amortization. d 33. Effective-interest amortization method. d 34. Impact of effective-interest method. c 35. Recording bonds issued between interest dates. d 36. Bonds issued at other than an interest date. d 37. Classification of bond issuance costs. c 38. Bond issuance costs. Test Bank for Intermediate Accounting, Thirteenth Edition MULTIPLE CHOICE Conceptual (cont.) Answer No. Description b 39. Classification of treasury bonds. d 40. Early extinguishment of bonds payable. d 41. Gain or loss on extinguishment of debt. c P 42. In-substance defeasance. c P 43. Reporting long-term debt. a S 44. Debt instrument exchanged for property. d 45. Valuation of note issued in noncash transaction. d 46. Stated interest rate of note. c 47. Accounting for discount on notes payable. d 48. Off-balance-sheet financing. c S 49. Off-balance-sheet financing. d S 50. Long-term debt maturing within one year. d 51. Required bond disclosures. d 52. Long-term debt disclosures. c 53. Times interest earned ratio. c. 54. Debt to total assets ratio. c *55. Modification of terms in debt restructure. d *56. Gain/loss on troubled debt restructuring. b *57. Gain/loss on troubled debt restructuring. b *58. Interest and troubled debt restructuring. c *59. Creditor's calculations for modification of terms. P These questions also appear in the Problem-Solving Survival Guide.... View Full Document

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