income before income taxes and interest expense by interest expense.
income before income taxes by interest expense.
12- Multiple Choice Question 152
If the market interest rate is greater than the contractual interest rate,
bonds will sell
at a discount.
only after the stated interest rate is increased.
at face value.
at a premium.
13- Multiple Choice Question 158
The market interest rate is often called the
coupon rate.
contractual rate.
stated rate.
effective rate.
14-
Multiple Choice Question 78
On October 1, Steve’s Carpet Service borrows $250,000 from First
National Bank on a 3-month, $250,000, 8% note. The entry by Steve’s
Carpet Service to record payment of the note and accrued interest on
January 1 is
Notes Payable 255,000