If Newly Issued Debt Is Issued from a Parent to Its

question 105

Multiple Choice

If newly issued debt is issued from a parent to its subsidiary, which of the following statements is false?

• A) Any premium or discount on bonds payable is exactly offset by a premium or discount on bond investment.
• B) There will be $0 net gain or loss on the bond transaction.
• C) Interest expense needs to be eliminated on the consolidated income statement.
• D) Interest revenue needs to be eliminated on the consolidated income statement.
• E) A net gain or loss on the bond transaction will be reported.

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Definitions:

Motor Areas

Regions in the brain responsible for the planning, control, and execution of voluntary movements.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for problem solving, judgment, and motor function.

Impulsivity

The tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Functional Connectivity

The temporal correlation between spatially remote neurophysiological events, often measured in brain imaging studies.