Chapter 14 quiz

Chapter 14 quiz - Selected Answer: Questio n 5 2 out of 2...

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Review Assessment: Quiz #3 Chap 14 Questio n 1 0 out of 2 points A bond issue with a face value of $800,000 on which there is unamortized premium of $30,000 is redeemed for $790,000. The gain or loss on the redemption of the bonds is a: Selected Answer: Feedback: Incorrect. The $40,000 gain on the redemption of the bonds is the difference between the carrying value of the bonds of $830,000 ($800,000 + $30,000) and the redemption price of $790,000. Questio n 2 2 out of 2 points The entry to record the amortization of a premium on bonds payable is: Selected Answer: Questio n 3 2 out of 2 points The entry to record the amortization of a discount on bonds payable is: Selected Answer: Questio n 4 2 out of 2 points Bonds Payable has a balance of $900,000 and Discount on Bonds Payable has a balance of $45,000. The carrying amount of the bonds is: Selected Answer: Questio n 5 2 out of 2 points Under the straight-line method of bond discount amortization, as a bond payable approaches maturity, the total yearly amount of interest expense will:
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Unformatted text preview: Selected Answer: Questio n 5 2 out of 2 points Questio n 6 2 out of 2 points Bonds that are issued on the basis of the general credit of the corporation are called: Selected Answer: Questio n 7 2 out of 2 points The ratio that measures the income earned by each share of common stock is: Selected Answer: Questio n 8 2 out of 2 points A bond that gives the bondholder a right to exchange the bond for other securities under certain conditions is called a: Selected Answer: Questio n 9 0 out of 2 points If the market rate of interest is less than the coupon rate of interest, the bonds will sell for a: Selected Answer: Question 10 0 out of 2 points From the first to the final payment, interest expense on an installment note payable behaves as follows: Selected Answer: Feedback: Incorrect. The interest expense on an installment note decreases from the first payment to the last payment. This is because the principal is decreased with each payment....
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Chapter 14 quiz - Selected Answer: Questio n 5 2 out of 2...

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