Acc 116 accounting review chap 8

Acc 116 accounting review chap 8 - Your Answer: Points...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Question: A bond indenture is Your Answer: a contract between the corporation issuing the bonds and the underwriters selling the bonds the amount due at the maturity date of the bonds a contract between the corporation issuing the bonds and the bond trustee, who is acting on behalf of the bondholders. CORRECT the amount for which the corporation can buy back the bonds prior to the maturity date Points Received: 2 of 2 Comments: 2. Question: Debenture bonds are Your Answer:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Points Received: 2 of 2 Comments: 3. Question: When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are Your Answer: Points Received: 0 of 2 Comments: 4. Question: The market interest rate related to a bond is also called the Your Answer: Points Received: 2 of 2
Background image of page 2
Comments: 5. Question: When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Your Answer: Points Received: 2 of 2 Comments: 6. Question: Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called Your Answer: Points Received: 2 of 2 Comments: 7. Question: If the market rate of interest is greater than the contractual rate of interest, bonds will sell Your Answer: Points Received: 0 of 2 Comments: 8. Question: If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount Your Answer: Points Received: 0 of 2 Comments: 9. Question: If bonds are issued at a premium, the stated interest rate is Your Answer: Points Received: 0 of 2 Comments: 10. Question: The balance in Discount on Bonds Payable Your Answer: Points Received: 2 of 2 Comments:...
View Full Document

This note was uploaded on 07/10/2011 for the course AC116 AC116 taught by Professor Janowich during the Spring '10 term at Kaplan University.

Page1 / 5

Acc 116 accounting review chap 8 - Your Answer: Points...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online