Question

In: Accounting

2.Amortizing a discount on along−termbond investment will​cause: A.the interest revenue reported on the income statement to...

2.Amortizing a discount on along−termbond investment will​cause:

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 a​subsidiary, 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

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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