6373241
Description
Quiz by Mikee Sevilleno, updated more than 1 year ago
|
Created by Mikee Sevilleno
over 7 years ago
|
|
Question 1
Question
Bonds payable not designated at fair value through profit or loss shall be measured initially at
Answer
-
Fair value
-
Fair value plus bond issue costs
-
Fair value minus bond issue costs
-
Face amount
Question 2
Question
After initial recognition, bonds payable shall be measured at
Answer
-
Amortized cost using the effective interest method.
-
Fair value through profit or loss.
-
Either amortized cost using the effective interest method or fair value through other comprehensive income.
-
Either amortized cost using the effective interest method or fair value through profit or loss.
Question 3
Question
The "amortized cost" of bonds payable means
Answer
-
Face amount plus premium on bonds payable
-
Face amount minus discount on bonds payable
-
Face amount minus bond issue cost
-
Face amount plus premium on bonds payable, minus discount on bonds payable and minus bond issue cost
Question 4
Question
Which of the following statements is true about electing the fair value option for measuring bonds payable?
Answer
-
The effective interest method of amortization must be used to calculate interest expense.
-
Discount or premium is disclosed in the notes to financial statements.
-
The fair value of the bond and the principal obligation value must be disclosed.
-
If the fair value option is elected, it must be applied to all bonds.
Question 5
Question
Under the fair value option, bonds payable shall be measured initially at
Answer
-
Fair value
-
Fair value plus bond issue cost
-
Fair value minus bond issue cost
-
Face amount
Question 6
Question
Bonds that mature on a single date are called
Answer
-
Term bonds
-
Serial bonds
-
Debenture bonds
-
Callable bonds
Question 7
Question
Bonds issued with scheduled maturities at various dates are called
Answer
-
Convertible bonds
-
Term bonds
-
Serial bonds
-
Callable bonds
Question 8
Question
Costs incurred in connection with the issuance of ten-year bonds which sold at a slight premium should be
Answer
-
Charged to retained earnings when the bonds are issued
-
Expensed in the year in which incurred
-
Capitalized as organization cost
-
Reported as a deduction from bonds payable and amortized over the ten-year bond term
Question 9
Question
Unamortized debt discount should be reported as
Answer
-
Direct deduction from the face amount of the debt
-
Direct deduction from the present value of the debt
-
Deferred charge
-
Part of the issue cost
Question 10
Question
The issuer of a 10-year term bond sold at par three years ago with interest payable May 1 and November 1 each year, shall report at year-end
Answer
-
Liability for accrued interest
-
Addition to bonds payable
-
Increase in deferred charges
-
Contingent liability
Question 11
Question
When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be
Answer
-
Decreased by accrued interest from June 1 to November 1
-
Decreased by accrued interest from May 1 to June 1
-
Increased by accrued interest from June 1 to November 1
-
Increased by accrued interest from May 1 to June 1
Question 12
Question
A bond issued on June 1 has interest payment dates of April 1 and October 1. Bond interest expense for the current year ended December 31 is for a period of
Answer
-
Three months
-
Four months
-
Six months
-
Seven months
Question 13
Question
How would the amortization of premium on bonds payable affect each of the following?
Carrying amount of bond ; Net Income
Answer
-
Increase ; Decrease
-
Increase ; Increase
-
Decrease ; Decrease
-
Decrease ; Increase
Question 14
Question
How would the amortization of discount on bonds payable affect each of the following?
Carrying amount of bond ; Net income
Answer
-
Increase ; Decrease
-
Increase ; Increase
-
Decrease ; Decrease
-
Decrease ; Increase
Want to create your own Quizzes for free with GoConqr? Learn more.