Select the best answer from the list below to completestatements that follow.
amortization long-term callable loss contra liability marketface value present value discount premium
1. All liabilities that are not classified as currentliabilities are classified as_____________
. 2. The denomination or principal amount of the bond is usuallyreferred to as the___________
. 3. Bonds that may be retired by the issuing company beforetheir specified due date are________________
. 4. The________________ rate of interest is the rate thatbondholders could obtain by investing in other bonds that aresimilar to the issuing firm's bonds.
5. The bond issue price equals the _______________of the cashflows that the bond will produce.
6. Bonds were issued at a(n)________________ when the issueprice exceeds the face value.
7. Discount on Bonds Payable is shown on the balance sheet asa(n) ________________
. 8. If the market rate ofinterest is greater then the face rate, then the bonds are issuedat a(n) ________________________.
9. ____________________is theprocess of transferring an amount from the bond discount or premiumto interest expense each time period to adjust interestexpense.
10. When a bond is retired earlyand the redemption price is greater than the bond's carrying value,there will be a(n) ______________________ on redemption.