Your Aunt,who Has Several Bad Habits,recently Found Out She Is

question 40

Multiple Choice

Your aunt,who has several bad habits,recently found out she is pregnant.What is the best advice you can give her?

• A) Quit drinking immediately.
• B) Quit smoking immediately, but an occasional drink is probably okay.
• C) She has already harmed her fetus.
• D) She can smoke and drink when the baby is in the fetal period.

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Definitions:

Amortized Bond Discount

The gradual reduction of a bond discount over the life of the bond, treated as additional interest expense over the bond's term.

Straight-line Method

A method of accounting for depreciation that allocates an asset's cost evenly over its useful life.

Called Bonds

Bonds that an issuer redeems before their maturity date at a specified call price.

Callable Bonds

Bonds that can be redeemed (called) by the issuer prior to their maturity date, typically at a premium above their par value.