The issue price is the price the stock initially sells for the first time it is sold

Alexa Company issued 5-year, 7% bonds with a par value of $100,000. The company received $97,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:

A) $3,294.70. B) $3,500.00. C) $3,705.30. D) $7,000.00. E) $7,410.60.

Accounting profits are used to make capital budgeting decisions because generally accepted

accounting principles ensure that profits are the best measure of a company's economic activity. Indicate whether the statement is true or false