If bonds are issued at a discount, it means that the

A patent should

be amortized over its useful life or 20 years, whichever is longer.

be amortized over its useful life or 20 years, whichever is shorter.

be amortized over a period of 20 years.

not be amortized.

If a corporation issued bonds at an amount less than face value, it indicates that the corporation has a weak credit rating.

True

False

Notes payable are often used instead of accounts payable.

True

False

If bonds are issued at a discount, it means that the

market interest rate is lower than the contractual interest rate.

bondholder will receive effectively less interest than the contractual rate of interest.

financial strength of the issuer is suspect.

market interest rate is higher than the contractual interest rate.