Accounting for Regulated Utilities,banks,and Transportation Firms Is Similar in That

question 53

Multiple Choice

Accounting for regulated utilities,banks,and transportation firms is similar in that:

• A)all are monopolies.
• B)all report property,plant,and equipment first on the balance sheet.
• C)all are controlled by the Interstate Commerce Commission.
• D)all carry heavy inventory.
• E)all utilize some form of uniform accounting system.

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Definitions:

Premium on Bonds Payable

The premium on bonds payable is the amount by which a bond's selling price exceeds its face value, reflecting additional value due to lower-than-market interest rates.

Redeems

The act of exchanging something, such as a coupon or voucher, for goods, services, or a monetary refund.

Unamortized Premium

The portion of the bond premium that has not yet been amortized or gradually written off over the lifetime of the bond.

Liabilities Section

Part of a balance sheet that reports obligations the company owes to outside parties, including debts, loans, and other financial obligations.