Bond Interest Paid by a Corporation Is an Expense, Whereas

question 156

True/False

Bond interest paid by a corporation is an expense, whereas dividends paid are not an expense of the corporation.

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Definitions:

AASB 136

The Australian Accounting Standards Board standard concerning the impairment of assets, requiring entities to ensure that asset carrying values are not more than their recoverable amounts.

Value In Use

The current worth of the anticipated future cash flows from an asset or a unit that generates cash.

Future Cash Flows

Estimated monetary gains or losses that will be realized by an entity in the future.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.