Bonds Are Issued on June 1 That Have Interest Payment

question 23

Multiple Choice

Bonds are issued on June 1 that have interest payment dates of April 1 and October 1.Bond interest expense for the year ended December 31,2016,is for a period of:

• A)Three months.
• B)Four months.
• C)Six months.
• D)Seven months.

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Definitions:

Money

A medium of exchange that facilitates the sale, purchase, or trade of goods between parties.

Money

A medium of exchange that is widely accepted in transactions for goods and services and repayment of debts.

Wealth

The total value of all financial assets and physical possessions owned by an individual or entity, minus any debts.

Required Reserve Ratio

The percentage of deposits that banks are mandated to keep on hand and not lend out, as regulated by central banking authorities.