When Bonds Are Retired at Maturity ________

question 132

Multiple Choice

When bonds are retired at maturity ________.

• A) the bondholders are paid the face value plus the unamortized premium or less the unamortized discount
• B) the carrying value equals the face value plus the unamortized premium or less the unamortized discount
• C) the carrying value always equals the face value
• D) the entry to retire the bonds may include a gain or loss on retirement of bonds

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Definitions:

Direct Materials Budget

An estimation of the raw materials required for production and their anticipated costs, aiding in financial planning and control.

Cash Payments

Cash payments are transactions in which money is transferred from one party to another to settle a debt or purchase goods or services.

Credit Sales

Sales where the customer is allowed to make payment at a later date, extending credit to the buyer.

Cash Received

The physical or electronic receipt of money from transactions, such as sales, debt collections, or asset disposals.