assignment_2(Ch14) - INTERMEDIATE ACCOUNTING Assignment...

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Assignment #2(CH14) Due Date: Mar 16, 2010(Tuesday) Student name: Student ID: Please write your answer in each blank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 10. 11. 13. 14. 15. 1. An example of an item which is not a liability is a. dividends payable in stock. b. advances from customers on contracts. c. accrued estimated warranty costs. d. the portion of long-term debt due within one year. 2. If bonds are issued initially at a premium and the effective-interest method of amortization is used, interest expense in the earlier years will be a. greater than if the straight-line method were used. b. greater than the amount of the interest payments. c. c the same as if the straight-line method were used. d. less than if the straight-line method were used. 3. The interest rate written in the terms of the bond indenture is known as the a. coupon rate. b. nominal rate. c. stated rate. d. coupon rate, nominal rate, or stated rate. 4. Stone, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that a. the effective yield or market rate of interest exceeded the stated (nominal) rate. b. the nominal rate of interest exceeded the market rate. c.
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assignment_2(Ch14) - INTERMEDIATE ACCOUNTING Assignment...

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