Chang Corp

question 110

Multiple Choice

Chang Corp.purchased $1,000,000 of bonds at par value on April 1,2010.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, 2010.
• 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:

Unwanted Motivation

Motivation that is unintended or undesirable, often leading to behaviors that are not aligned with an individual's long-term goals or values.

Unwanted Response

A behavior or reaction that is not desired or intended in a particular context or situation.

Mowrer's Two-Factor Theory

A theory that combines both classical and operant conditioning to explain the development and maintenance of phobias.

Punishment

A consequence that decreases the likelihood of a behavior being repeated by applying an undesirable stimulus or removing a desirable one.