A company will most likely use an estimated method of determining inventory when
a. the company decides not to do a physical inventory
b. a natural disaster has destroyed most of the inventory
c. the company has not kept up with its inventory records
d. the company is preparing annual financial statements
Question 2
On July 1, 2011, Ace Electronics issued 10 million dollars of 8, 20-year bonds at 102. The bonds pay interest SEMIANNUALLY on December 31 and June 30. How much cash will Ace pay on December 31, 2011, the first interest payment date?
A) 800,000
B) 408,000
C) 400,000
D) 816,000
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