9- Multiple Choice Question 76
When an interest-bearing note matures , the balance in the Notes Payable account is
less than the total amount repaid by the borrower .
the difference between the maturity value of the note and the face value of the note .
equal to the total amount repaid by the borrower . greater than the total amount repaid by the borrower 10-Multiple Choice Question 125
From the standpoint of the issuing company , a disadvantage of using bonds as a means of long-term financing is that
interest must be paid on a periodic basis regardless of earnings . the bondholders do not have voting rights .
income to stockholders may increase as a result of trading on the equity .
bond interest is deductible for tax purposes . 11-Multiple Choice Question 194 The times interest earned ratio is computed by dividing income before interest expense by interest expense . net income by interest expense . income before income taxes and interest expense by interest expense . income before income taxes by interest expense .