Question 6. 6. (TCO D) Which of the following is a characteristic of
the expense warranty approach, but not the sales warranty
approach? (Points : 5)
Estimated liability under warranties
Warranty expense
Unearned warranty revenue
Warranty revenue
Question 7. 7. (TCO D) The term used for bonds that are unsecured
regarding principal is (Points : 5)
junk bonds.
debenture bonds.
in-debenture bonds.
callable bonds.
Question 8. 8. (TCO D) On July 1, 2009, Noble, Inc. issued 9%
bonds in the face amount of $5,000,000, which mature on July 1,
2015. The bonds were issued for $4,695,000 to yield 10%, resulting
in a bond discount of $305,000. Noble uses the effective-interest
method of amortizing bond discount. Interest is payable annually on
June 30. At June 30, 2011, Noble's unamortized bond discount
should be (Points : 5)