Homework answers / question archive / 1

1

Accounting

Share With

---

1.The sale of a long−term investment would appear on a cash flow statement as? a:

A.cash outflow in the investing activities section

B.cash inflow in the financing activities section

C.cash inflow in the operating activities section

D.cash inflow in the investing activities section

2.On March? 1, 2017, Uncontracted Capacity Company? (UCC) purchased? $20,000 of Utility Service? Corporation's 9% bonds at a purchase price of 90. Uncontracted Capacity? Company, whose year end is December? 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every March 1 and September 1 until maturity. Assuming that UCC is a private corporation that elects to amortize premium or discounts using straight−line ?amortization, how much total interest revenue will be recorded by UCC on September? 1, 2017?

A.$1,200

B.?$900

C.$1,100

D.$800

3.When a premium on a bond investment is amortized by the company holding the? investment:

A.the amount of cash received as an interest payment will be reduced

B.companies normally credit a separate account called Premium on Investments

C.Interest Revenue will be debited

D.the amount of cash received as an interest payment will be increased