USGAAP and IFRS Account for Notes and Nonconvertible Bonds Payable

question 161

Multiple Choice

U.S.GAAP and IFRS account for notes and nonconvertible bonds payable similarly.Which of the following is/are not true?

• A)Firms initially record long-term notes and bonds at their issue price, the present value of the future contractual cash flows discounted at the market interest rate for the bonds at the time of issue.
• B)The market interest rate at the time of issue is the rate that discounts the contractual cash flows to the initial issue price.
• C)If the market interest rate equals the coupon rate for the bonds, the firm will issue the bonds for face value.
• D)If the market interest rate exceeds the coupon rate, the firm will issue the bonds for more than face value.
• E)If the coupon rate exceeds the market interest rate, the firm will issue the bonds for more than face value.

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Definitions:

Respiratory Droplets

Tiny particles produced from the respiratory tract during coughing, sneezing, or talking that can transmit infections.

Viruses

Very simple, frequently pathogenic, microorganisms capable of replicating within living cells.

Chronic Obstructive Pulmonary Disease

A group of lung diseases characterized by obstructed airflow leading to breathing difficulty, often caused by long-term exposure to irritating gases or particulate matter.

Muscular

Relates to muscles or the muscular system, especially concerning strength, flexibility, or physical fitness.