If ABC Company Receives $100,000 Cash in Exchange for Issuing

question 81

Multiple Choice

If ABC Company receives $100,000 cash in exchange for issuing 100 bonds at their $1,000 face value,the transaction will be recorded with a:

• A)debit to Cash of $100,000 and a credit to Bonds Payable of $100,000.
• B)debit to Bonds Payable of $100,000 and a credit to Cash of $100,000.
• C)debit to Cash of $100,000 and a credit to Bonds Payable of $99,000 and to Premium on Bonds Payable of $1,000.
• D)debit to Bonds Payable of $100,000 and a credit to Cash of $99,000 and to Premium on Bonds Payable of $1,000.

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Definitions:

Bootstrapping

A statistical method that resamples a single dataset to create many simulated samples, used in assessing the precision of sample estimates.

Resamples

The practice of repeatedly drawing samples from a given dataset with the intention of estimating a population parameter.

With Replacement

Sampling with replacement is a method where each selected unit is returned to the population before the next unit is selected, allowing it to be possibly chosen more than once.

Bootstrapping Method

A resampling technique used in statistics to estimate the distribution of a statistic by sampling with replacement from the original dataset.