Not all of the answer choices are here
Answer:
purchasing power bonds
Explanation:
The whole idea behind constant purchasing power bonds is that when they are redeemed, the amount of money received by the bondholder will hold a stable amount of purchasing power instead of a nominal amount of dollars.
This type of bonds are similar to inflation-linked bonds which are adjusted to the value of the CPI.
The whole idea is that the bonds will always yield real interest rates.
Answer:
Debit Cash and Interest Expense; Credit Notes Payable.
Explanation:
This Journal entry would increase Cash, Interest Expense; and Notes Payable. For example, a borrower would receive $9,901 (proceeds) for a $10,000 (face value) note discounted $101 the journal entry would be debit Cash $9,901, debit Interest Expense $101 and credit Notes Payable $10,000.
Answer:
If the hospital underestimated its bad debt, that means that they are overestimating their profits. The cash flow is determined using the income statement, so it will also be overestimated. But at some point reality will catch up and the actual cash flow will be less than expected, since bad debts reduce actual revenue.
