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Question 7 part a: How are intangible assets reported in the financial statements?
| a | | Intangibles with determinable fair values are reported in the balance sheet at their fair value |
| b | | Intangibles with determinable fair values are reported in the balance sheet net of accumulated amortization |
| c | | All intangibles are reported in the balance sheet, at their fair value if determinable or book value if not |
| d | | Intangible assets are not reported in either the balance sheet or income statement |
b: If ABC Company borrows $500 by issuing a note to the lender, the journal entry by ABC to record this would include ________.
| a | | a debit to Notes Receivable for $500 |
| b | | a credit to Notes Receivable for $500 |
| c | | a debit to Notes Payable for $500 |
| d | | a credit to Notes Payable for $500 |
| e | | none of the above |
c:
The Green Company issues bonds with a total face value of $3,000,000 and receives $3,000,000 in cash. Which of the following is true?
| a | | The bonds were issued at a discount. |
| b | | The annual interest expense is less than the annual amount of interest paid in cash. |
| c | | The annual interest expense is less than the annual amount of interest paid in cash. |
| d | | The annual interest expense is equal to the annual amount of interest paid in cash. |
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