Question 1

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The three key elements of a bond include all of the following except:

	Maturity date
		Stated interest rate.
		Face value.
		Bond holder.

Question 2

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Manco received $100,000 in exchange for issuing 100 bonds at their face value. What is the correct journal entry to record this transaction?

Question 3

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The bond stated interest rate is also known as the:

		Coupon rate.
		Market rate.
		Borrowing rate.
		Current rate.

Question 4

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Which of the following is false?

		Bonds can be issued at face value.
		Bonds can be issued at a bonus.
		Bonds can be issued at a premium.
		Bonds can be issued at a discount.

Question 5

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A process of calculating the present value of future payments is known as:

		Discounting.
		Compounding.
		Operating.
		Bonding.

Question 6

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Which of the following expenses is recorded on an operating lease?

		Depreciation expense
		Interest expense
		Rent expense
		Other expense

Question 7

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Which of the following is false regarding capital leases?

		All risks and rewards of owning the property are transferred to the lessee.
		The lessee records the property as an asset.
		The rental payments are recorded as an operating expense.
		The lessee records depreciation on the equipment.

Question 8

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A capital lease transfers all risks and rewards of owning a property to the lessee.

	True
	False

Question 9

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Under an operating lease arrangement the lessee records depreciation on the property.

	True
	False