ACCT 3044 Chapter 13 Preview Quiz A

ACCT 3044 Chapter 13 Preview Quiz A

University

6 Qs

quiz-placeholder

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ACCT 3044 Chapter 13 Preview Quiz A

ACCT 3044 Chapter 13 Preview Quiz A

Assessment

Quiz

Mathematics

University

Hard

Created by

Christi Hayne

Used 2+ times

FREE Resource

6 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If a bond sells at 97, the market interest rate is

Greater than the stated interest rate

Equal to the stated interest rate

Less than the stated interest rate

Equal to the coupon rate

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The selling price of a bond is calculated by:

Summing the present values of the principal and periodic interest payments using the market interest rate

Summing the present values of the principal and periodic interest payments using the stated interest rate

Summing the present values of the periodic interest payments using the market interest rate

Summing the present values of the periodic interest payments using the stated interest rate

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A $100,000, 9% interest bond was issued for $104,000.  The journal entry to record the issuance of the bond will include:

A credit Bonds Payable, $104,000

A debit to Premium on Bonds Payable, $4,000

A debit to Discount on Bonds Payable, $4,000

A credit to Premium on Bonds Payable, $4,000

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The effective interest rate method calculates bond interest by

multiplying the carrying value of the bonds at the beginning of the period by the stated rate of interest

multiplying the carrying value of the bonds at the beginning of the period by the market rate of interest

dividing the carrying value of the bonds by the number of interest periods

by dividing the carrying value of the bonds by the number of interest periods

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

When a bond sells at a discount, interest expense will be

Equal to the bond interest payment

Greater than the bond interest payment

Less than the bond interest payment

It depends

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

During the life of the bond, Premium on Bonds Payable will be decreased/amortized with a

debit, thus, increasing the carrying value of the bond

credit, thus, decreasing the carrying value of the bond

debit, thus, increasing the carrying value of the bond

credit, thus, decreasing the carrying value of the bond

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