When Bonds Are Retired Before Their Maturity Date

question 21

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 may report a non-operating gain or loss.

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Definitions:

Kelly

Refers to George A. Kelly, a psychologist known for his personal construct theory which depicts how individuals construct and predict their world.

Construct System

A psychological concept referring to the framework of ideas and beliefs through which an individual perceives, interprets, and interacts with the world.

Get Along

The ability or capacity of individuals to maintain harmonious and functional relationships with others.

Rational Emotive Therapy

A psychotherapy procedure introduced by Ellis that examines the irrational reasoning causing emotional problems.