111. Indicate whether each of the following statements about lines of credit is true or false.
_____ a) Line-of-credit agreements generally involve a fluctuating rate of interest.
_____ b) A line-of-credit agreement allows a company to borrow on an as-needed basis.
_____ c) Interest rates on line-of-credit agreements are often pegged to the consumer price index.
_____ d) The signing of a line-of-credit agreement is an asset source transaction.
_____ e) The expense recognition for the payment of monthly interest is an asset exchange transaction.
112. Indicate whether each of the following statements about bonds is true or false.
_____ a) The carrying value of a bond increases over time if the bond was issued at a premium.
_____ b) At the end of the term of the bonds, the carrying value of a bond issue is equal to the face value.
_____ c) If bonds are sold below face value, the difference between the issue price and the face value is called the bond discount.
_____ d) The payment of interest is an operating activity on the statement of cash flows.
_____ e) The issuance of bonds does not appear on the statement of cash flows.