ACCT 370 Connect Smartbook Assignment 12 solutions complete answers

ACCT 370 Connect Smartbook Assignment 12 solutions complete answers 

 

A liability represents a present obligation from a past event to

 

An example of a monetary liability is

 

Which of the following would be classified as a current liability?

 

A convertible bond

 

The principal amount may be referred to any of the following names except,

 

Bonds sell at par when the stated rate

 

An example of a nonmonetary liability is

 

A bond would sell at a discount when the rate demanded by investors

 

Which of the following current liabilities would be shown at its present value?

 

Upon the issuance of a bond with a discount, cash is debited for

 

A mortgage bond

 

A $1,000 10-year bond pays interest annually at a stated rate of 6%. The market rate at the date of issuance is 8%. One step in computing the price of the bond is to discount

 

Which of the following are true regarding bonds?

 

The term ordinary annuity refers to

 

For a bond issued at a discount, the annual amount of interest expense equals

 

A bond price is determined by discounting contractual cash flows by the

 

A bond would sell at a premium when the rate demanded by investors

 

Upon the issuance of a bond with a discount, Bonds payable is credited for

 

Upon the issuance of a bond with a premium, cash is debited for

 

One step in computing the price of the bond is to discount the interest payments using

 

For a bond issued with a premium, the annual amount of interest expense equals

 

For a $1,000 bond that pays 6% semiannually, the company would pay

 

If the market interest rate increases, the present value of fixed-rate bond cash flows

 

For a bond issued at a discount, the annual amount of the discount amortization under the effective interest method equals

 

Under U.S. GAAP accounting for fixed-rate bonds, when market interest rates decrease the book value of the bond

 

When a firm early extinguishes bonds that were issued at a premium, and the fair value of the bond is greater than the book value of the bond,

 

Upon the issuance of a bond with a premium, Bonds payable is credited for

 

For a bond issued at a premium,

 

Debt-for-equity swaps

 

If the market interest rate decreases, the present value of fixed-rate bond cash flows

 

Under U.S. GAAP, the fair value option of accounting may be applied to

 

Under U.S. GAAP accounting for fixed-rate bonds, when market interest rates increase the book value of the bond

 

A company elects the fair value option for its bonds payable. It also uses the fair value option for a debt investment that has the same face value and interest rate as the bonds payable. During the year, the fair values of both the bonds payable and the debt investment increase by $100,000. The effect of the value changes on pretax income would be

 

The fair value of a company's bonds payable falls by $100,000 because of its deteriorating financial condition. Under the fair value option, the company's

 

If LIBOR interest rates increase, the fair value of variable-rate bond cash flows

 

Debt-for-debt swaps

 

When a note payable does not have a stated interest rate, the company will

 

Under U.S. GAAP, companies

 

An analyst can estimate an average cash interest rate by dividing cash interest paid by

 

A company elects the fair value option for its bonds payable. It also uses the fair value option for a debt investment that has the same face value and interest rate as the bonds payable. During the year, the fair values of the bond payable and the debt investment increase by $100,000. The company would

 

One indication of financial weakness is that

 

The fair value of a company's bonds payable falls by $100,000 because of its deteriorating financial condition. Under the fair value option,

 

If LIBOR interest rates decrease, the fair value of variable-rate bond cash flows

 

When estimating the average cash interest rate,

 

A $1,000 10-year bond pays interest annually at a stated rate of 6%. The market rate at the date of issuance is 8%. One step in computing the price of the bond is to discount the $1,000 using a

 

The amount paid to a bond investor at maturity is called the

 

For a bond issued at a discount,

 

For a bond issued with a premium, the annual amount of the premium amortization under the effective interest method equals

 

One step in computing the price of the bond is to discount the face amount using

 

When a firm early extinguishes bonds that were issued at a premium, and the fair value of the bond is less than the book value of the bond,

 

Which of the following would be classified as a noncurrent liability?

 

Which of the following would meet the definition of a liability?