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If $5\%$ bonds are issued at $101\mathrm{.}75,$ this means that:

Select one:

A$.$ The effective rate of interest is higher than $5\%.$

B$.$ The bonds sold at a discount.

C$.$ The bond rate of interest is $1\mathrm{.}75\%$ higher than of the effective rate of interest.

D$.$ A $$2,000$ bond sold for $$2,035.$

Question $7$

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Which one of the following is not a reason for which adjusting entries are made?