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  1. business
  2. accounting
  3. 2.amortizing a discount on alongtermbond investmen

2.Amortizing a discount on alongtermbond investment willcause: A.the interest revenue reported on the income statement...

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Accounting

2.Amortizing a discount on alongtermbond investment willcause:

A.the interest revenue reported on the income statement to equal the cash received by the investor

B.the cash received by the investor to exceed the interest revenue reported on the income statement

C.the interest revenue reported on the income statement to exceed the cash received by the investor

D.the interest revenue reported is not related to the cash received by the investor

3.When a premium on a bond investment is amortized by the company holding the investment:

A.the amount of cash received as an interest payment will be increased

B.the amount of cash received as an interest payment will be reduced

C.Interest Revenue will be debited

D.companies normally credit a separate account called Premium on Investments

4.When a parent acquires 100% of the voting stock of asubsidiary, that subsidiary:

A.automatically becomes part of one large legal entity that consists of the parent and the subsidiary together

B.ceases to exist as a separate legal entity, but it is still accounted for as a separate accounting entity

C.lives on as a separate legal entity

D.continues to exist as an accounting entity, but it ceases to exist in any legal form

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