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What are the two promises which a bond issuer makes to the buyer of its bonds?
A. To repay the face amount of the bond at maturity date and to pay in cash interest on the face amount of the bond at the market rate from the issue date until maturity
B. To repay the face amount of the bond at maturity date and to pay in cash interest on the face amount of the bond at the stated rate from the issue date until maturity
C. To repay the face amount of the bond at issue date and to pay in cash interest on the face amount of the bond at the stated rate from the issue date until maturity
D. To repay the face amount of the bond at issue date and to pay in cash interest on the face amount of the bond at the market rate from the issue date until maturity
E. None of the above
Question 3
STATEMENT OF CASH FLOW: For Company X, if the beginning inventory is 3,000,000 and the ending inventory is 1,000,000, what is the change in inventory from the beginning of the year until the end
of the year?
A. 3,000,000
B. 2,000,000 increase
C. 1,000,000 increase
D. 1,000,000 decrease
E. None of the above
Question 2
Which account does not have the normal balance?
A. Bonds Payable balance 100,000 credit
B. Cash balance 10,000 debit
C. Discount on Bonds Payable balance 10000 credit
D. Premium on Bonds Payable balance 10000 credit
E. All of the accounts have the normal balance