The Amazing Widget Company Issues $500,000 of 6%,10-Year Bonds at 103

question 27

Multiple Choice

The Amazing Widget Company issues $500,000 of 6%,10-year bonds at 103 on March 31,2014.The bond pays interest on March 31 and September 30.The market rate of interest on the issuance date was 4%.Assume the company uses the straight-line method for amortization.The journal entry to record the issuance would include a:

• A) debit to Cash for $500,000.
• B) credit to Bonds payable for $515,000.
• C) credit to Discount on bonds payable for $15,000.
• D) debit to Cash for $515,000.

Understand the categories of corporate social responsibility (CSR) approaches and be able to identify them in real business scenarios.

Grasp the concept of sustainability and its application within the finance and corporate sectors for the betterment of future generations.

Comprehend the nature and sources of ethical dilemmas in business.

Identify and explain different perspectives on ethical behavior in business contexts.

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Definitions:

Myopia

Refers to the difficulty human beings have with conceptualizing the more distant future. Leads to decisions that overly favor present and near-term options at the expense of more distant future possibilities.

Great Depression

A severe global economic downturn that lasted from 1929 to the late 1930s, marked by massive unemployment and the collapse of financial institutions.

Present Consumption

The act of using goods and services to satisfy current needs and desires rather than saving for future use.

Self-Control Problems

Refers to the difficulty people have in sticking with earlier plans and avoiding suboptimal decisions when finally confronted with a particular decision-making situation. A manifestation of time inconsistency and potentially avoidable by using precommitments.