Question 7 part a: How are intangible assets reported in the financial statements?

a		Intangibles with determinable fair values are reported in the balance sheet at their fair value
b		Intangibles with determinable fair values are reported in the balance sheet net of accumulated amortization
c		All intangibles are reported in the balance sheet, at their fair value if determinable or book value if not
d		Intangible assets are not reported in either the balance sheet or income statement

b: If ABC Company borrows $500 by issuing a note to the lender, the journal entry by ABC to record this would include ________.

a		a debit to Notes Receivable for $500
b		a credit to Notes Receivable for $500
c		a debit to Notes Payable for $500
d		a credit to Notes Payable for $500
e		none of the above

c:

The Green Company issues bonds with a total face value of $3,000,000 and receives $3,000,000 in cash. Which of the following is true?

a		The bonds were issued at a discount.
b		The annual interest expense is less than the annual amount of interest paid in cash.
c		The annual interest expense is less than the annual amount of interest paid in cash.
d		The annual interest expense is equal to the annual amount of interest paid in cash.