Bonds Payable Have a Face Amount of $1,000,000 and a Discount

question 84

Multiple Choice

Bonds payable have a face amount of $1,000,000 and a discount of $10,000.The face interest rate is 9 percent and the effective interest rate is 10 percent.If the annual interest payment is due today,what amount of interest expense should be recorded?

• A)$100,000
• B)$ 99,000
• C)$ 90,000
• D)$ 89,100

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Definitions:

Stable

Characterized by consistency, reliability, and resistance to change or disorder.

Unstable

Characterized by a lack of stability, unpredictability, or being prone to sudden change.

Goal-Related Thinking

is the cognitive process involved in setting, pursuing, and achieving personal objectives.

Outcome Expectancies

Beliefs about the consequences of certain behaviors, which can influence an individual's motivation and actions.