In General, Which of the Following Statements Is True

question 47

Multiple Choice

In general, which of the following statements is true?

• A)Bonds issued in the United States pay interest annually, while bonds issued in other countries pay interest semiannually.
• B)Bonds issued in the United States and other countries pay interest semiannually.
• C)Bonds issued in the United States and other countries pay interest annually.
• D)Bonds issued in the United States pay interest semiannually, while bonds issued in other countries pay interest annually.

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Definitions:

Issued at a Premium

Refers to the situation where securities, such as bonds, are sold for a price above their face value.

Discount on Bonds Payable

The difference between the face value of a bond and its selling price when the bond is sold for less than its face value.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate, representing its value at issuance.

Journal Entry

A record in accounting that shows a business transaction and its effects on the company's accounts.