Reference no: EM132826433

Problem 1: Which of the following statements regarding serial bonds is true?

a. The bonds do not all mature on the same date.
b. They are the most common type of bond issued.
c. They have shorter lives than term bonds.
d. They are always backed by the issuer's collateral.

Problem 2: Amortization of a bond premium results in

a. an increase in interest expense.
b. a decrease in the Cash account.
c. a decrease of the carrying value of bonds.
d. no change in stockholders' equity.

Problem 3: One example of a temporary difference between financial and tax reporting results from

a. rent expense.
b. depreciation of long-term assets.
c. tax-exempt interest from municipal bonds.
d. life insurance proceeds resulting from the death of an executive.