Question : 101. In return for promising to make future payments, a firm : 1230297

 

 

101. In return for promising to make future payments, a firm receives cash or other assets with a measurable cash-equivalent value. The firm records a long-term liability for that amount and the book value of that borrowing at any time equals the 
A. future value of all the then-remaining promised payments using the historical market interest rate applicable at the time the firm originally incurred the liability.
B. current value of all the then-remaining promised payments using the historical market interest rate applicable at the time the firm originally incurred the liability
C. present value of all the then-remaining promised payments using the market interest rate applicable at the current time
D. present value of all the then-remaining promised payments using the historical market interest rate applicable at the time the firm originally incurred the liability.
E. future value of all the then-remaining promised payments using the using the market interest rate applicable at the current time.

 

102. In return for promising to make future payments, a firm receives cash or other assets with a measurable cash-equivalent value. The firm records a long-term liability for that amount and determines the market interest rate by finding the 
A. internal rate of return.
B. external rate of return.
C. applicable federal rate.
D. prime lending rate published in The Wall Street Journal.
E. federal funds rate.

 

103. The interest rate that discounts a series of future cash flows to its present value is called the 
A. internal rate of return.
B. external rate of return.
C. creditors rate of return.
D. prime lending rate published in The Wall Street Journal.
E. federal funds rate..

 

104. Borrowers who retire long-term liabilities debit the liability account for its current book value, credit Cash, and recognizes any difference on the retirement of the debt as a 
A. gain when book value exceeds cash disbursement (credit).
B. gain when cash disbursement exceeds book value (credit).
C. loss when book value exceeds cash disbursement (debit)
D. a financing loss (debit)
E. cannot be determined from the above information.

 

105. Bonds whose indentures contain a provision which requires the issuing firm to make a provision for partial early retirement of the bond issue are sinking fund bonds and _____ bonds. 
A. callable bonds
B. refunded bonds
C. serial bonds
D. convertible bonds
E. zero coupon bonds

 

106. U.S. GAAP requires that all long-term monetary liabilities appear on the balance sheet at the 
A. future value of the present cash payments.
B. total value of the future cash payments.
C. imputed value of the future cash payments.
D. present value of the future cash payments.
E. historical cash proceeds from debt issuance.

 

107. In historical cost accounting, the discounting process uses the original interest rate appropriate for the particular borrower at the time it incurred the obligation. That rate will have depended on the amount and terms of the borrowing arrangement as well as the risk that the borrower will default on the obligations. The rate is known as the 
A. prime interest rate
B. explicit interest rate
C. imputed interest rate
D. federal funds rate
E. applicable federal rate

 

108. A document or agreement giving the terms of the bond and the rights and duties of the borrower and other parties to the contract that provides some protection to the bondholders and typically limits the borrower’s right to declare dividends, to make other distributions to owners, and to acquire other businesses is known as a 
A. bond sinking fund agreement
B. serial bond funding agreement
C. bond indenture
D. creditor indenture
E. business trust indenture

 

109. The most common type of corporate bond, except in the railroad and public utility industries, that carries no special collateral and the borrower issues it on the general credit of the business is called a 
A. sinking fund bond
B. serial funded bond
C. debenture bond
D. convertible bond
E. zero coupon bond

 

110. A bond that does not require a periodic cash payment, but instead promises a single payment at maturity, is called a _____ bond. 
A. sinking fund
B. zero coupon
C. debenture
D. perpetual
E. convertible

 

111. Debentures that the holder (lender) can exchange, possible after some specific period of time has elapsed, for a specific number of shares of common stock or, perhaps, preferred stock of the borrower are called _____ bonds. 
A. sinking fund
B. zero coupon
C. serial
D. convertible
E. callable

 

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more