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vova2212 [387]
3 years ago
5

A discount on bonds payable: a. Occurs when a company issues bonds with a contract rate less than the market rate. b. Occurs whe

n a company issues bonds with a contract rate more than the market rate. c. Increases the Bond Payable account. d. Decreases the total bond interest expense.
Business
1 answer:
GaryK [48]3 years ago
7 0

Answer:

a. Occurs when a company issues bonds with a contract rate less than the market rate

Explanation:

Premium on bonds payable - occurs when a company issues bonds for an amount greater than their face or maturity amount. This causes the bonds to have a contract interest rate that is higher than the market interest rate for similar bonds.

Discount on bonds payable - occurs when a company issues bonds for an amount lesser than their face or maturity amount. This causes the bonds to have a contract interest rate that is lesser than the market interest rate for similar bonds.

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The correct answer to the following question is Substitution.

Equity can be defined as the shares or stock that a company issues to the public to get the financing and these stocks represent ownership interest in the company.

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When stocks or anything valuable are exchanged or replaced for one's existing debt , then we call this process Substitution .

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3 years ago
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The two types of package labeling in common usage today are:______.
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Answer:

d. Informational and persuasive.

Explanation:

Informational package labelling as the name implies gives details about the specific products which is aimed at convincing perspective buyers to buy. Here, the information about the product are well spelt out in the package labelling thus gives more about what the product is all about. The aim is to capture consumers mind so that they would eventually buy the products.

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3 years ago
"As a result of the increase in government​ expenditures, the" A. money supply curve will shift right. B. money supply curve wil
blondinia [14]

Answer:

A. money supply curve will shift right.

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3 years ago
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If Ford Motor Company builds a new auto plant in South Africa this is considered to be
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Group of options omitted and they are

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By  horizontal direct investment , it  means that the  investor establishes  the same type of  operation in a different country as it operates in its home country, for example, Ford Motor Company  based in the United States building a new auto plant  in South Africa.

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3 years ago
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