On NOVEMBER 30,2011,Just in Thyme,Inc

question 95

Multiple Choice

On NOVEMBER 30,2011,Just in Thyme,Inc.issued $10,000 of 20-year,9% bonds at 100.The bonds pay interest SEMIANNUALLY on May 31 and November 30.How much cash did Just in Thyme receive when the bonds were issued?

• A)$10,000
• B)$10,900
• C)$9,100
• D)$0

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Definitions:

Ending Inventory

The amount of goods available for sale at the finis of an accounting cycle.

Perpetual LIFO Method

The perpetual LIFO (Last In, First Out) method is an accounting technique for inventory valuation where goods are assumed to be sold in the reverse order they were acquired, continuously adjusting inventory value.

Income Before Taxes

The profit a company generates before accounting for taxes, used to assess the operational efficiency of a business.

Income Taxes

Taxes imposed by the government on the income generated by individuals or entities.