What the impact on the financial statements is

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Problem 1: For a zero-coupon bond:

A. The coupon rate is lower than the market rate

B. The cash received from investors is less than the bond's face value

C. Amortization of bond discount equals to the interest expense

D. The bond's net book value rises over time

E. All of the above

Problem 2: If a firm does not record the payment received from a customer for an accounts receivable, the impact on the financial statements is:

A. Cash is overstated and net income is overstated

B. Cash is understated and net income is understated

C. Cash is overstated and liabilities are understated

D. Cash is understated and accounts receivable is understated

E. Cash is understated and accounts receivable is overstated

Reference no: EM132667617

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