Bonds Are Issued on June 1 That Have Interest Payment

question 56

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, 2009, is for a period of:

• A)Three months.
• B)Four months.
• C)Six months.
• D)Seven months.The interest expense is for the time the bonds were outstanding during the reporting period - 7 months in this case.

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Definitions:

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A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

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