Final Exam Review Dr Lu

Final Exam Review Dr Lu - Final Exam Review Questions Dr....

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Final Exam – Review Questions Dr. Ron Lazer Source: Dr. Lu’s Quizzes 1. Graham Inc., issued bonds on 1/1/Year 1, which mature in 10 years. The firm issued the bonds at a premium. Over the 10-year term of the bond issue, Graham will record A. Increasing amounts of interest expense each year. B. Decreasing amounts of interest expense each year. C. An unchanging amount of interest expense each year. D. No interest expense. 2. A firm issued 6% coupon bonds on the market when the market interest for these bonds was 8%. The firm therefore issued these bonds A. At a premium to face value. B. At a discount to face value. C. At face value. D. At par value. 3. The balance in the Estimated Warranty Liability account at the end of the period A. Represents the costs incurred for repairs made. B. Represents the estimated cost of repairs to be made under warranties in effect at that time. C. Should be identical to Warranty Expense. D. Should be matched against revenues.
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4. Regina Corporation issued a 7%, $500,000 bond issue at a price to yield the market interest rate of 8%. The bond makes periodic payment semiannually. How much cash would Regina pay at the first periodic payment date? A. $17,500. B. $20,000. C.
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This note was uploaded on 01/09/2010 for the course ACCT 2331 taught by Professor Staff during the Fall '08 term at University of Houston.

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Final Exam Review Dr Lu - Final Exam Review Questions Dr....

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