Mcq aac 218

Multiple Choice (2 poll 1. The contractual interest rate is usually stated as a(n) a. monthly rate. daily rate. C. semiannual rate. d. annual rate. 2. Secured bonds are bonds that a. are in the possession of a bank. b. are registered in the name of the owner. c. have specific assets of the issuer pledged as collateral. d. have detachable interest coupons. to arrive at 3. Bonds will always fall into which one of the following pairs of categories? a. Secured or unsecured b. Mortgage or sinking fund ist rate. c. Debenture or unsecured terest rete. d. Callable or convertible 4. If a short-term debt investment is sold, the Debt Investments account is a. debited for the fair value of the bonds at the sale date. ies exc b. credited for the cost of the bonds at the sale date. c. credited for the fair value of the bonds at the sale date. d. debited for the cost of the bonds at the sale date. 5. Which of the following would not be reported under "Other Revenues and Gains" on the income statement? a. Unrealized gain on available-for-sale securities b. Dividend revenue c. Interest revenue d. Gain on sale of short-term debt investments 6. Belle Corporation retires its bonds at 105 on January 1, following the payment of annual interest. The face value of the bonds is $600,000. The carrying value of the bonds at the redemption date is $621,500. The entry to record the redemption will include a a. credit of $21,500 to Loss on Bond Redemption. b. debit of $30,000 to Premium on Bonds Payable. c. credit of $8,500 to Gain on Bond Redemption. d. debit of $21,500 to Premium on Bonds Payable