9. For a liability to exist, a past transaction or event must have occurred. the exact amount must be known. the identity of the party owed must be known. an obligation to pay cash in the future must exist. a. b. c. d.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Please answer following

: AEINAC2 MIDTERM X
L aeinac2_midterm.ht x
G A liability is recorde X
O AEINAC2 MIDTERM X
A Meet - swt-pftr
My Questions | bart x +
O File | C:/Users/IDEAPAD%203%20i5/Downloads/aeinac2_midterm.htm
Multiple Choice
Identify the choice that best completes the statement or answers the question.
9. For a liability to exist,
a past transaction or event must have occurred.
the exact amount must be known.
а.
b.
the identity of the party owed must be known.
an obligation to pay cash in the future must exist.
с.
d.
v 10. The effective interest rate on bonds is higher than the stated rate when bonds sell
а.
at face value.
b.
above face value.
below face value.
с.
d.
at maturity value.
11. The effective interest rate on bonds is lower than the stated rate when bonds sell
at maturity value.
above face value.
а.
b.
с.
below face value.
d.
at face value.
12. When interest expense is calculated using the effective-interest amortization method, interest expense (assuming that interest is paid annually) always equals the
actual amount of interest paid.
book value of the bonds multiplied by the stated interest rate.
book value of the bonds multiplied by the effective interest rate.
maturity value of the bonds multiplied by the effective interest rate.
а.
b.
с.
d.
13. On July 1, 2002, TJR issued 2,000 of its 8 percent, $1,000 bonds for $1,752,000. The bonds were issued to yield 10 percent. The bonds are dated July 1, 2002, and mature on July 1,
2012. Interest is payable semiannually on January 1 and July 1. Using the effective-interest method, how much of the bond discount should be amortized for the six months ended
December 31, 2002?
$15,200
$12,400
$9,920
$7,600
а.
b.
с.
d.
14
2002
Lotonaat mo nt datas n the ho de La 1 nd Lul.. 1
The e ma ant
i to be
1:06 pm
G 1») O ENG
02/03/2022
...
Transcribed Image Text:: AEINAC2 MIDTERM X L aeinac2_midterm.ht x G A liability is recorde X O AEINAC2 MIDTERM X A Meet - swt-pftr My Questions | bart x + O File | C:/Users/IDEAPAD%203%20i5/Downloads/aeinac2_midterm.htm Multiple Choice Identify the choice that best completes the statement or answers the question. 9. For a liability to exist, a past transaction or event must have occurred. the exact amount must be known. а. b. the identity of the party owed must be known. an obligation to pay cash in the future must exist. с. d. v 10. The effective interest rate on bonds is higher than the stated rate when bonds sell а. at face value. b. above face value. below face value. с. d. at maturity value. 11. The effective interest rate on bonds is lower than the stated rate when bonds sell at maturity value. above face value. а. b. с. below face value. d. at face value. 12. When interest expense is calculated using the effective-interest amortization method, interest expense (assuming that interest is paid annually) always equals the actual amount of interest paid. book value of the bonds multiplied by the stated interest rate. book value of the bonds multiplied by the effective interest rate. maturity value of the bonds multiplied by the effective interest rate. а. b. с. d. 13. On July 1, 2002, TJR issued 2,000 of its 8 percent, $1,000 bonds for $1,752,000. The bonds were issued to yield 10 percent. The bonds are dated July 1, 2002, and mature on July 1, 2012. Interest is payable semiannually on January 1 and July 1. Using the effective-interest method, how much of the bond discount should be amortized for the six months ended December 31, 2002? $15,200 $12,400 $9,920 $7,600 а. b. с. d. 14 2002 Lotonaat mo nt datas n the ho de La 1 nd Lul.. 1 The e ma ant i to be 1:06 pm G 1») O ENG 02/03/2022 ...
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