The Actual Return on a Bond Is Dependent Upon Which

question 93

Multiple Choice

The actual return on a bond is dependent upon which of the following?
I.the coupon rate
II.the reinvested interest rate
III.any changes in par value
IV.any changes in market price

• A)I, II and III only
• B)II, III and IV only
• C)I, III and IV only
• D)I, II and IV only

---

Definitions:

Absorption Costing

An accounting method that assigns all manufacturing costs, both variable and fixed, to products, thereby impacting the inventory valuation on the balance sheet.

Net Operating Income

The profit a company makes from its operations, calculated as total revenue minus operating expenses, excluding taxes and interest.

Variable Costing

An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Absorption Costing

A product costing technique that adds up all manufacturing expenses — direct materials, direct labor, variable, and fixed overheads — into the comprehensive cost of the product.