READING VERIFICATION FORM - CHAPTER 14 and CHAPTER 12 (Appendix B)

Spiceland and Sepe

Note: This RV has six questions

1. Theoretically, how is the selling (market) price of a bond or note determined?

2. What is the difference in interest recorded under the straight line and effective interest methods?

 3. How is a gain or loss on extinguishment of debt computed?

 4. What is the difference in the way convertible bonds and bonds issued with stock warrants are accounted for?

  5. What is a troubled debt restructuring? What are the two types of troubled debt restructuring?

 6. What is the asymmetry in the way debtors and creditors account for a troubled debt restructuring involving a modification of terms?