When Bonds Are Retired Before Their Maturity Date

question 39

Multiple Choice

When bonds are retired before their maturity date:

• A)GAAP has been violated.
• B)The issuing company will always report a non-operating gain.
• C)The issuing company will always report a non-operating loss.
• D)The issuing company will report a non-operating gain or loss.

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Definitions:

Apex

The top or highest part of something, often pointed; used in various anatomical contexts.

Auricles

The external part of the ear, also known as the pinna, which is visible on the sides of the head.

Chordae Tendineae

Tendinous cords that connect the papillary muscles to the atrioventricular valves in the heart to prevent inversion during contraction.