Help!! Accounting multiple choice questions concerning bonds?

NetherCraft 0

1. Which of the following statements concerning bonds is not a true statement?

a.Bonds are generally sold through an investment company.

b.The bond indenture is prepared after the bonds are printed.

c.The bond indenture and bond certificate are separate documents.

d.The trustee keeps records of each bond holder.

2. Most companies pay current liabilities

a.out of current assets issuing interest-bearing notes payable issuing stock creating long-term liabilities

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3 Answers

  • 1) b

    2) a

  • the main excellent answer is “C”. activity fee could continuously be calculated in line with mentioned activity value(8%) and the corporate will pay the central volume($2 hundred,000) on the adulthood date. Semiannual activity fee would be $8,000(2 hundred,000 x8p.c.x6/12). simply by fact the bond is a 10 year bond and activity is paid 2 situations in a year, the corporate will make 20 activity paments.

  • 1-b


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