USGAAP and IFRS Account for Notes and Nonconvertible Bonds Payable

question 105

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 less than face value.
• E)If the coupon rate exceeds the market interest rate, the firm will issue the bonds for less than face value.

---

Definitions:

Stimulating Performance

The process of encouraging or motivating employees to improve their work output or to perform at a higher standard.

Job Descriptive Index

A survey instrument that measures employees' job satisfaction with various aspects of their job, including the work itself, supervision, pay, co-workers, and opportunities for promotion.

Job Satisfaction

The degree of satisfaction workers experience regarding their positions, duties, and workplace atmosphere.

Absenteeism

The habit of being frequently absent from work or other duties without good reason.