A $600,000 Bond Was Retired at 102 When the Carrying

question 78

Multiple Choice

A $600,000 bond was retired at 102 when the carrying value of the bond was $622,000. The entry to record the retirement would include a

• A)gain on bond redemption of $12,000.
• B)loss on bond redemption of $10,000.
• C)loss on bond redemption of $12,000.
• D)gain on bond redemption of $10,000.

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Definitions:

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue.

Net Profit Margin Ratio

A financial measurement that calculates how much of each dollar of revenues is translated into profits after accounting for all expenses, taxes, and interest, expressed as a percentage.

Return on Assets Ratio

A financial ratio indicating how Profitable a company is relative to its total assets, measuring how efficiently a company is using its assets to generate profit.

Net Profit Margin Ratio

A financial metric that shows the percentage of net income to sales revenue, indicating how much profit each dollar of sales generates.