When a Bond Is Listed as Having Two Maturity Dates

question 48

Multiple Choice

When a bond is listed as having two maturity dates,

• A)the bond is callable and may be redeemed by the issuer on the first maturity date.
• B)half of the par value of the bond will be paid on the first date and the other half on the second date.
• C)interest payments on the bond begin on the first date and end on the second date.
• D)the purchaser may insist on being paid the par value of the bond on the first maturity date.

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Definitions:

Initial Recognition

refers to the first time an entity records an asset, liability, equity, income, or expense based on its recognition criteria in the accounting records, establishing its inclusion in the financial statements.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against an asset over its life up to a specific date.

Impairment Losses

Losses recognized when the carrying amount of an asset, or a cash-generating unit, exceeds its recoverable amount.

Productive Life

is the period during which an asset remains functional and can produce goods or services that are useful for the entity owning it.