Effect of recording the transaction on the issue date

Assignment Help Financial Accounting

Reference no: EM131263831

On January 1, George Electric issued $25 million of 10-year bonds at a discount. Which of the following is one effect of recording the transaction on the issue date?

George Electric’s liquidity will increase.

George Electric’s retained earnings will decline.

George Electric’s total assets will decline.

George Electric’s profitability will decline.

Reference no: EM131263831

Questions Cloud

Evaluation of the performance of a subsidiary : Do you think it is important to separate the evaluation of the performance of a subsidiary from that of its manager? Why? If we substitute the CEO or the corporation C-suite management of a corporation for the manager, would your position be the same..

Consumer goods companies take regional approach to marketing : Which of the following is a reason why consumer goods companies take a regional approach to marketing? Which of the following is a similarity between a stock market and a labor market? Which of the following is an advantage of a multisegment targetin..

Generate the highest proceeds upon issuance : Which one of the following 6-year bonds with a maturity value of $75,000 would generate the highest proceeds upon issuance?

Calculate the total dollar amount of personal exemptions : A couple with three dependent children has an annual adjusted gross income of 238,500. Calculate the total dollar amount of personal exemptions that they can claim for the 2014 tax year.

Effect of recording the transaction on the issue date : On January 1, George Electric issued $25 million of 10-year bonds at a discount. Which of the following is one effect of recording the transaction on the issue date?

Credit account titles are automatically indented : On January 9, a company pays $5,000 for salaries and wages of which $2,000 was reported as Salaries and Wages Payable on December 31. Give the entry to record the payment. (Credit account titles are automatically indented when the amount is entered. ..

Capitalized or expensed as repairs and maintenance : Your supervisor has come to you with the following list of expenditures for the year and is asking you whether they should be capitalized or expensed as repairs and maintenance. Indicate all of the expenditures that would most appropriately be capita..

Statements is true of trends in gender marketing : ?To increase the sales of low-involvement products, marketing managers can: ?Which of the following statements is true of trends in gender marketing? Which of the following is a similarity between joint ventures and licensing agreements? Small busine..

Classified as either current or long-term assets : Which of the following securities can be classified as either current or long-term assets on a company’s balance sheet?

User Account

All Pages