Bonds and Long Term Notes Payable MCQs

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A bond issued and supported only by the general credit standing of the issuing corporation is called a(an):






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Which of the following statements is not true?






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Which is a disadvantage of bonds?






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Which type of bond gives the issuing corporation the option of retiring the bond, at a predetermined price, prior to the maturity date of the bond?






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Which is not true of bonds sold at a discount?






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When $100,000 of 5% annual interest, 10-year bonds are sold at 98 (98.0%), the total interest expense on the bonds will be:






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When $100,000 of 5% semiannual interest, 10-year bonds are sold at 98 (98.0%), the amount of periodic bond discount using the straight-line method of ...






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$100,000 of 5% annual interest, 10-year bonds were sold at 98 (98.0%) when the market rate of interest was 6%. The amount of periodic bond discount us...






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When $100,000 of 5% annual interest, 10-year bonds are sold at 103.5 (103.50%), the total interest expense on the bonds will be:






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$100,000 of 8% annual interest, 10-year bonds were sold at 105.5 (105.50%) when the market rate of interest was 7%. The amount of periodic bond premiu...






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Bonds with a par value of $100,000, which pay 9% annual interest and pay interest on June 30 and December 31, were sold on July 31 at par value. What ...






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Selected accounts of the corporation had the following balances: Bonds Payable $200,000 Discount on Bonds Payable 3,000 The corporation r...






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Ten-year bonds with a par value of $100,000, 8% annual interest, were sold for $106,000 on September 30, when the market rate of interest was 7%. The ...






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When $500,000 of 10-year, 10% bonds that pay interest semiannually are sold when the market rate of interest is 14%, which of the following lines desc...






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$100,000 bonds with a carrying value of $103,600 were retired at a call price of $101,000. The journal entry to retire the bonds would include a:






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Ignacious Construction purchased a tractor by issuing a 5-year non-interest-bearing note for $100,000 when the market rate of interest was 10%. The no...






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Lack-Luster Corporation borrowed money by issuing a $100,000 installment note payable that required $10,000 annual payments, plus interest of 12% on t...






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A $40,000 installment note requires the borrower to repay the note with five (5) annual payments of equal amounts of principal plus 8% accrued interes...






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A $40,000 installment note requires the borrower to repay the note with five (5) equal payments of principal and 8% interest on the unpaid balance. Ea...






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The legal agreement that offers protection to a lender by giving the lender the right to be paid from the cash proceeds from the sale of specified ass...