80.2K

Verified Solution

Link Copied!

11. The loss to be recognized by a creditor on an impaired loan is the difference between the investment in the loan and the expected undiscounted future cash flows from the loan. a. True b. False 12. 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 a. decreased by accrued interest from May 1 to June 1 b. increased by accrued interest from June 1 to November 1. c. increased by accrued interest from May 1 to June 1 d. decreased by accrued interest from June 1 to November 1 13. Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements? a. The amount of scheduled interest payments on long-term debt during each of the next five years b. The amount of future payments for sinking fund requirements and long-term debt maturities during each of the next five years The present value of future payments for sinking fund requirements and long-term debt maturities during each of the next five years. The present value of scheduled interest payments on long-term debt during each of the next five years. c. d. 14. If bonds are issued between interest dates, the entry on the books of the issuing corporation could include a a. debit to Interest Payable. b. credit to Unearned Interest. c. credit to Interest Receivable. d. credit to Interest Expense. 15. When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless a. no interest rate is stated b. the stated interest rate is unreasonable. C. the stated face amount of the note is materially different from the current cash sales price for similar items or from current fair value of the note. any of these. d

Answer & Explanation Solved by verified expert

See Answer