Answer:
liquidity premium theory
Explanation:
The liquidity premium theory states that those that invest in bonds do prefer high liquid as well as securities that are short-dated so that it can be sold fast compare to long-dated ones. It states that investors do get compensation for higher default risk when there is change in interest rate.
It should be noted that The liquidity premium theory of the term structure states the following: the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a term premium that responds to supply and demand conditions for that bond.
Answer:
Date Particular Debit Credit
Jan 1, 2021 Cash $64,700
Discount on bond payable $5,930
Bond payable $70,000
Jun 30,2021 Interest expense $3,882
Discount on bonds payable $2,132
Cash $1,750
Workings:
Semi annual interest payment = 70,000 x 5% x 6/12
= $1,750
Interest expense on June 30, 2021 = Carrying value of bonds x Market interest rate
= 64,700 x 6%
= $3,882
Discount on bonds payable amortized on June 30, 2021 = Interest expense - Interest payment
= 3,882 - 1,750
= $2,132
Answer:
(A) GAAP does not have substantial authoritative support.
Explanation:
Choices B to C are true about GAAP.
Now, Choice A is not true since GAAP also includes detailed procedures and practices that provide a <u>standard</u> and not only broad guidelines of general application and this will imply that GAAP has a <u>substantial authoritative support.</u>
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Also it is called "Generally Accepted Accounting Principles" for this reason.
The general designation of computer programs for performing tasks is called <span>application software, or software application. All of the tasks are made by algorithms designed and implemented by computer programmers. Algorithms are a mathematic way to convert the human process of thinking into "machine thoughts".</span>
Answer: The correct answer is "c. It is commonly used in the test marketing of new products in isolated geographic areas."
Explanation: The statement "It is commonly used in the test marketing of new products in isolated geographic areas." is true about the experimental method of data collection.
The experimental method of data collection is that by which an experiment is performed establishing the appropriate conditions of the place to run the test and thus collect data effectively.
