Which of the following is true concerning HTML?
Answer(s): C
HTML is the most popular language for authoring Web pages. It is hardware and software independent, which means that it can be read by several different applications and on many different kinds of computer operating systems. HTML uses tags to mark information for proper display on Web pages.
Which of the following is a false statement about XBRL?
XBRL stands for eXtensible Business Reporting Language. It is being developed for business and accounting applications. It is an XML-based application used to create, exchange, and analyze financial reporting information and is being developed for worldwide use.
If an entity has outstanding bonds with a sinking fund provision and if interest rates have<List A> since the bonds were issued, the entity would realize a savings in meeting its sinking fund obligations by <List B>.
Answer(s): A
If interest rates have increased, the prices of outstanding bonds must decrease so that their yields will reach the market rate. Hence, the bonds will be selling at a discount below face value) in the open market. Retiring a portion of the outstanding bonds by buying them in the open market at the discounted price will be cheaper than calling a portion of the bonds at face value.
Convertible bonds and bonds issued with warrants differ in that:
Answer(s): D
Warrants are usually detachable. They are options to purchase equity securities and should be separately accounted for. A capital gain results if the share price rises above the option price. The bonds remain outstanding if the warrants are exercised. Convertible bonds must be surrendered when the conversion privilege is exercised. Under IFRSs, the equity and debt features of convertible bonds are separately accounted for.
Zero-coupon bonds:
Answer(s): B
Zero-coupon bonds sell at a deep discount and increase in value each year until maturity.These bonds do not pay interest.
Post your Comments and Discuss IIA IIA-CIA-PART3-3P exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the IIA-CIA-PART3-3P content, but please register or login to continue.