If a Government Issues Bonds with a Face Value of $5,000,000

question 23

Multiple Choice

If a government issues bonds with a face value of $5,000,000 at a 2% discount and incurs $55,000 of issuance costs, the General Long-Term Liabilities accounts will report a liability of

• A) $4,845,000.
• B) $4,900,000.
• C) $5,000,000.
• D) $5,100,000.

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Definitions:

Highest 9%

Describes the uppermost value or percentage, in a different context perhaps suggesting an inversion or error, actually implicating a lower percentile.

Middle 96%

Refers to the central portion of a distribution or set of data points that encompasses 96% of all values, leaving 2% of the values on each tail end.

-2.05 To 2.05

Often refers to a range of values, possibly related to statistical significance levels, confidences intervals, or standard score (Z-score) ranges.

Middle 87.4%

Represents the percentage of data falling in the middle range of a distribution, often referred to in terms of percentile ranks or areas under a curve in statistics.