As a Result of a Drop in Interest Rates,a Company

question 24

Multiple Choice

As a result of a drop in interest rates,a company retires bonds which had been issued at their face value of $200,000.The company bought the bonds back at 97.This retirement would be recorded with a:

• A)debit of $200,000 to Bonds Payable,a credit of $6,000 to Gain on Bonds Retired,and a credit of $194,000 to Cash.
• B)debit of $200,000 to Bonds Payable and a credit of $200,000 to Cash.
• C)debit of $200,000 to Bonds Payable,a credit of $6,000 to Interest Expense,and a credit of $194,000 to Cash.
• D)debit of $194,000 to Bonds Payable and a credit of $194,000 to Cash.

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Definitions:

Switching

The act of changing from one state, condition, or activity to another, which can refer to various contexts including psychological states or activities.

Dissociative Disorder

A group of mental disorders characterized by a disconnection between thoughts, identity, consciousness, and memory.

Dissociative Fugues

An uncommon mental health condition marked by temporary memory loss regarding one's own identity, encompassing recollections, character traits, and other personal distinguishing features.

Histrionic

A rephrased definition: Pertains to a behavior or personality trait that is overly dramatic, emotionally excessive, and seeks constant attention.