Chang Corp

question 34

Multiple Choice

Chang Corp. purchased $1,000,000 of bonds at par value on April 1, 20X0. The bonds pay interest at the rate of 10%. Chang intends to hold these bonds to maturity. Which of the following statements is false?

• A) Since the bonds were issued at par value, the cash interest will be the same as interest revenue.
• B) The bonds will earn $75,000 of interest by December 31, 20X0.
• C) The bond investment must be accounted for using the fair value approach.
• D) Since they were classified as held-to-maturity, the company would recognize no unrealized gains or losses on the bonds over their lifetime.

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Definitions:

Functional Hair Follicles

Hair follicles that are actively producing hair, indicating health and vitality of the hair growth cycle.

Hair Bulb

The rounded, club-shaped structure located at the base of the hair follicle, containing active cells that grow hair.

Cuticle

Outer, thin layer, usually horny—for example, the outer covering of hair or the growth of the stratum corneum onto the nail.

Medulla

The innermost part of an organ or structure, such as the central region of the kidney or the lower part of the brainstem.