• 2022-05-26
    Premium on Bonds Payable is an adjunct or accretion liability account.
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    • 0

      (I) The risk premium widens as the default risk on corporate bonds increases. (II) The risk premium widens as corporate bonds become less liquid.

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      Amortizing a bond discount: A: Allocates a portion of the total discount to interest expense each interest period. B: Increases the market value of the Bonds Payable. C: Decreases the Bonds Payable account. D: Decreases interest expense each period. E: Increases cash flows from the bond.

    • 2

      Holt Company sold $1,000 of goods on credit to Renfrew Company. This would be recorded as an Account ( ) of Holt company and as an Account ( ) of Renfrew Company. A: Receivable, Receivable B: Payable, Payable C: Receivable, Payable D: Payable, Receivable

    • 3

      Which of these is an example of an liability account?

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      All of the following are liability accounts except__________. A: accounts payable B: unearned ticket revenue C: taxes payable D: commissions earned E: notes payable