1. When a long-term note payable with a fixed interest rate has fixed principal payments, it means that:

a. the periodic payment amount is fixed.

b. the periodic payment increases over time.

c. the periodic payment decreases over time.

d. no conclusion can be made on the periodic payment.

2. Mrs. Exe sold 200 shares of Tee Corp. to Mrs. Wye for $3,150. As a result of this transaction, Tee Corp.s

a. shareholders equity increased by $3,150.

b. shareholders equity did not change.

c. shareholders equity decreased by $3,150.

d. assets increased by $3,150.

3.When a bond is issued at a discount, the amount of interest expense for an interest period is calculated by:

a. multiplying the carrying amount times the market interest rate.

b. multiplying the carrying amount times the coupon interest rate.

c. multiplying the face amount of the bonds by the coupon interest rate.

d. multiplying the face amount of the bonds by the market interest rate.