T or F Practice Question 22
At what point and how are sales taxes charged to customers recorded?
At the time of the sale as revenue
At the time of the sale as a liability
At the time the sale takes place as an expense
At the time collected from the customer as unearned revenue
Practice Question 52
Brazen Inc. sells bonds with a face value of $1,000,000 and a contract interest rate of 9% for $1,200,000. The bonds will mature in 10 years. Using the straight line method of amortization of the bonds’ premium, how much interest expense will be recognized in year 1?
Practice Question 67
How are convertible bonds accounted for on the date of issuance under IFRS?
A portion of the issue price is reported as equity and the other portion is expensed immediately.
The issue price is reported as stockholders’ equity.
The issue price is reported as a liability.
A portion of the issue price is reported as debt and a portion as equity.