When a Bond Is Selling for More Than Its Face

question 66

Multiple Choice

When a bond is selling for more than its face value, it is said to be selling at a:

• A)discount.
• B)premium.
• C)commission.
• D)conservative value.
• E)prospectus value.

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Definitions:

Chart of Accounts

A systematic listing of all ledger account titles and numbers used by a company, showing the classification and arrangement of accounts.

Posting Reference

A notation that guides one from a journal entry to its corresponding ledger account, facilitating audit trails.

Cash Account

An account that records the amounts of cash available to a business at any given time.

Chart of Accounts

An organized list of all accounts used in the general ledger of an organization, serving as the foundation for its accounting system.