Unformatted text preview: Q.4 ) Under the effective-interest method of bond discount of premium amortization, the periodic interest expense is equal to A . the stated (nominal) rate of interest multiplied by the face value of the bonds B . the market rate of interest multiplied by the face value of the bonds C . the stated rate multiplied by the beginning-of-period carrying amount of the bonds D . the market rate multiplied by the beginning-of-period carrying amount of the bond Q.5 ) Treasury bonds should be shown on the balance sheet as A . an asset B . both an asset and liability C . a deduction from bonds payable issued to arrive at net payable and outstanding D . a reduction of stockholder's equity...
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This note was uploaded on 02/28/2012 for the course ACCT 460 taught by Professor Charley during the Spring '12 term at Aachen University of Applied Sciences.
- Spring '12