Reference no: EM133012221
Problem 1: A debenture will be issued at discount value:
Select one:
a. Because that is the offer price; if the rate offered is too low the offer will be under-subscribed, so those who take it up will receive more interest.
b. When coupon rate of interest is lower than market rate of interest
c. On those occasions when the offer rate is equal to the coupon rate.
d. On most occasions, because management is careful to issue the debentures at an amount close to the market rate.
Problem 2: Impairment loss is recorded when
Select one:
a. Carrying amount of an asset is greater than recoverable amount of it.
b. Carrying amount of an asset is equal to recoverable amount of it.
c. Carrying amount of an asset is smaller than that of recoverable amount of it.
d. Correct option is not listed
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