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NEW QUESTION: 1
For each of the following statements, select Yes if the statement is true. Otherwise, select No. NOTE: Each correct selection is worth one point.
Answer:
Explanation:
NEW QUESTION: 2
When you configure an external Network Time Protocol server that will be used by the Cisco Unified Communications Manager subscriber, which version of Network Time Protocol does Cisco recommended?
A. Version 4.0
B. Version 1.0
C. Version 3.0
D. Version 2.0
Answer: A
NEW QUESTION: 3
Abbey Company issued $1,000,000 of 10-year bonds with a contractual interest rate of LIBOR + 2%.
The interest rate is to be reset annually. Bondholders will receive interest annually. The LIBOR for the year 2000 is 5.5%. The entry to record interest expense for the year 2000 is
A. Interest expense (debit) 75,000; Accrued interest payable (credit) 75,000
B. Interest expense (debit) 55,000; Discount on bonds payable (debit) 20,000; Accrued interest payable
(credit) 75,000
C. Interest expense (debit) 75,000; Discount on bonds payable (credit) 20,000; Accrued interest payable
(credit) 55,000
Answer: A
Explanation:
Floating rate debt is almost always issued at par, so there is no premium or discount to be amortized. Interest expense is debited for $75,000 which is the face value of $1 million * the interest rate of 7.5% (the LIBOR of 5.5% plus 2%).
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