Ünite Sınavı Soruları

How does the amortization of a discount affect bond interest expense?

What is the interest rate written in terms of bond indenture?

1. Bond is a form of interest-bearing notes payable issued by corporations and governmental agencies.
2. Like a note, a bond requires a promise to pay a sum of money at a designated maturity date, plus periodic interest at a specified rate on the maturity amount (face value).
3. Bonds payable are the most common type of long term debts issued to multiple lenders called bondholders.
4. The main purpose of issuing bonds is to borrow for the long term when the amount of capital needed is too large for one lender to supply.
5. By issuing bonds, a company can divide a large amount of long-term indebtedness into many small investing units, thus enabling more than one lender to participate in the loan.
6. Each investor can buy a specified amount of the company’s bonds.

Which of the statements above related to bonds are correct?

1. Bond issues that mature on a single date are called term bonds
2. Bond issues that mature in installments are called serial bonds.
3. Bonds issued in the name of the owner are called registered bonds
4. Bonds not issued in the name of the owner are called bearer (coupon) bonds.
5. Bonds which pay interest from the profit of issuing company are called income bonds.
6. Bonds which pay interest from specified revenue sources are called revenue bonds.

Which of the statements above related to the various types of bonds are correct?

On January 2, 2019 Anadolu Co. issued bonds for 100,000 TL due in 5 years with 8 percent interest payable semiannually. At the time of issue market rate for such bonds is 6 percent. The principal amount borrowed will be paid back once at maturity. Calculate the present value (selling price) of the bonds. 

Which of the following is not a  bond type?

Which of the following is the most common type of long term debt?

Which of the following is a bond for which a company has pledged specific property to ensure its payment?

On January 1, 2018 Call Corporation issued bonds for $100,000 due in 5 years with 10 percent interest payable semiannually (twice a year). At the time of issue market rate for such bonds is 12 percent. The principal amount borrowed will be paid back once at maturity. What is  the selling price of bonds?

On January 2, 2019 Anadolu Co. issued bonds for 100,000 TL due in 5 years with 8 percent interest payable semiannually. At the time of issue market rate for such bonds is 10 percent. The principal amount borrowed will be paid back once at maturity. Calculate the present value (selling price) of the bonds. 

Which transaction might the journal entry in the figure be made for?

Which of the following occurs as the result of the amortization of the discount on bonds payable? 

Each bondholder receives a bond certificate showing the name of the company that borrowed the money. The certificate specifies .................., which is the amount of the bond issue.

Which of the following situation is suitable when the amount of capital needed is too large for one lender to supply?

Which of the following is the definition of terms bonds? 

Which account must be debited when recording interest payment?

"............... consist of an expected outflow of resources arising from present obligations that are not payable within a year or the operating cycle of the company whichever is longer."

Which of the following best describes the space left blank in the above sentence?

When selling price of a bond is different from its face value, which of the following is correct?

Which of the following is a type of bonds which pay no interest unless the issuing company is profitable?

Which of the following is not a bond indenture deals ?