Activity 2: Q1) Which of the following statements is FALSE? A Bond is a liability for issuer and an asset for holder. B By convention the coupon rate is expressed as an effective annual rate. C Bonds typically make two types of payments to their holders. D The time remaining until the repayment date is known as the term of the bond. SUBMIT

Activity 2: Q1) Which of the following statements is FALSE? A Bond is a liability for issuer and an asset for holder. B By convention the coupon rate is expressed as an effective annual rate. C Bonds typically make two types of payments to their holders. D The time remaining until the repayment date is known as the term of the bond. SUBMIT

which of the following statements are true under leases in the Financial Statements of Lessees The asset is depreciated over the shorter of the lease term or asset’s useful life Lease payments reduce the liability and cover any accrued interest The lessee has to allocate the finance charge between accounting periods The finance charge is charged to the SPLOCI – P/L Question 6Select one: a. None b. 1, 2 and 4 c. 1, 3 and 4 d. 2, 3 and 4 e. 1,2 and 3 f. All

Which of the following statements is FALSE?a.The time remaining until the repayment date is known as the term of the bond.b.Bonds are usually less risky than shares.c.Bonds are securities sold by governments and corporations to raise money from investors today in exchange for promised future payments.d.By convention the coupon rate is expressed as an effective annual rate.e.Bonds typically make two types of payments to their holders.

Which of the following statements is correct about debentures?(a) Interest on debentures is an appropriation of profits.(b) Debenture holders are the creditors of a company.(c)Debentures cannot be issued to vendors at discount.(d) Interest is paid on Debentures issued as Collateral Security.7. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternativefrom those given below.Assertion (A) :- Under Section 62(1)(b) of the Companies Act, 2013, a Company may offershares to its employees under a scheme of ‘Employees Stock Option’ which means the option(right) given to the whole-time directors, officers or permanent employees of a company topurchase or subscribe the securities offered by the company at a future date, at a pre-determinedprice, which is lower than the market price.Alternatives:Reason (R) :- The company need not to pass a special resolution to this effect.(a) Both Assertion (A) and Reason (R) are Correct and Reason (R) is the correct explanation ofAssertion (A)(b) Both Assertion (A) and Reason (R) are Correct, but Reason (R) is not the correct explanationof Assertion (A)(c) Assertion (A) is incorrect, but Reason (R) is Correct.(d) Assertion (A) is correct, but Reason (R) is incorrect8. Neil, Nitin and Nitesh were partners in the firm sharing profits and losses equally. Neil retiresfrom the firm and on his retirement, he is entitled for the payment due to him after all theadjustments.

Activity 2: Q3) Which of the following statements is FALSE? A A bond trades at par when its coupon rate is equal to its yield to maturity. B A bond trades at premium when its coupon rate is greater than its yield to maturity. C A bond that has zero coupon rate is a discount bond. D If a coupon bond's yield to maturity exceeds its coupon rate, the present value of its cash flows at the yield to maturity will be greater than its face value. SUBMIT