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account payable; price of bonds; effect to AP

An accounts payable could result from - the purchase of accounts for cash? purchase property, plant and equip on credit? purchase goods and services from suppliers on credit?

When bonds are issued at a premium are the bonds sold for less than their face amount? interest expense on the bonds will be more than the interest paid? Interest expenses on the bonds will be less than the interest paid? the coupon rate is less than the market rate?

The market value of a bond is the sum of the prime rate? the coupon rate, market rate or dividend rate?

When a supplier makes a downward adjustment in the amount owed by a creditor a decrease in the amount of AP to an supplier and an increase in cash? increase in the amount of AP to a supplier and a decrease in an asset such as inventory? decrease the amount of ap to a supplier and decrease an asset such as inventory? decrease the amount of AP to a supplier and decrease cash?

Which is not associated with bonds - maturity value, coupon rate, maturity rate or face amount?

Current maturity of long term debt are classified with long term debt? permit a more accurate determination of working capital? represent cash that has been set aside for debt payments due within a year?

Solution Preview

An accounts payable could result from:

? the purchase of accounts for cash? No (since cash exchanged, not still due)
? purchase property, plant and equip on credit? Yes, "on credit" is the key
? purchase goods and services from suppliers on credit? Yes, "on credit" is the key,

Premium Bonds:

? When bonds are issued at a premium are the bonds sold for less than their face amount? More
? Interest expense on the bonds will be more than the interest paid? No, less. Premium received will reduce interest payments down to actual interest expense burden.
? Interest expenses on the bonds will be less than ...

Solution Summary

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