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Dmitry_Shevchenko [17]
4 years ago
11

Which of the following statements is true of a bond that is issued at a discount?A) At maturity, the bond will repay an amount t

hat is less than the face value.B) The bond will be issued for an amount less than the face value.C) The bond will be issued at par.D) The stated interest rate is higher than the prevailing market interest rate.
Business
1 answer:
Sonbull [250]4 years ago
5 0

Answer: The statement "B) The bond will be issued for an amount less than the face value." is <u>TRUE.</u>

Explanation: Bonds issued at a discount are those that are issued for less than the nominal amount. The interesting thing about these bonds issued at a discount is that they can have high yields.

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Wisconsin Farm Equipment Company sold equipment for cash. The income statement shows a loss on the sale of $ 10 comma 000. The n
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Answer:

A. positive cash flow of $ 20 comma 900 from investing activities

Explanation:

book value - sales price = loss on sale

30,900 - sales price = 10,000

30,900 - 10,000 = sales price

sales price = 20,900

Assumming the purchase was on cash, it will be disclosure as cash generated from investing activities for 20,900

The reason is that cashflow do not focus on the gain or loss from the sale. It focus on the cash movements and this sale involve a cashinflow of 20,900

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After the accounts are adjusted and closed at the end of the fiscal year, accounts receivable has a balance of $340,000 and allo
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340,000-51,000=$289,000
3 0
3 years ago
Protectors' Insurance wants to build strong relationships with its customers and is looking to create a more interactive approac
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Answer: Internet

Explanation:

Online advertising helps organizations find the right audience as the ones who are really interested in the products that are being sadvertised are targeted.

Internet advertising tools such as, social media, display ad and video ads helps the task of reaching ones target audience easier. This can enhance strong relationships with ones customers create a more interactive approach to advertising.

4 0
4 years ago
Which of the following statements is true? a) You will always pay less interest with a 15-year mortgage than with a 30-year mort
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<span>b) With an adjustable rate mortgage, the interest rate always increases after the first five years 

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4 0
3 years ago
Pharoah Company purchased $2600000 of 8%, 5-year bonds from Sheridan, Inc. on January 1, 2021, with interest payable on July 1 a
kobusy [5.1K]

Answer:

$75,260

Explanation:

Calculation for What should Pharoah Company report as other comprehensive income and as a separate component of stockholders' equity

Using this formula

Comprehensive income/separate component of stockholders' equity=Fair value-(Sales of bonds-July 1, 2021 Amortized premiums-December 31, 2021 Amortized premiums)

Let plug in the formula

Comprehensive income/separate component of stockholders' equity=$2,780,000 - ($2,724,740 - $9,820 - $10,180)

Comprehensive income/separate component of stockholders' equity=$2,780,000-$2,704,740

Comprehensive income/separate component of stockholders' equity= $75,260

Therefore What should Pharoah Company report as other comprehensive income and as a separate component of stockholders' equity is $75,260

8 0
3 years ago
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