T/F . There is a zero effective interest rate whenever the debtor recognizes a again on a troubled debt restructuring(i.e., continuation of the loan agreement with modified terms). ATTACHMENT PREVIEW Download attachment Intermediate Questions.docx PART I: ANSWER TRUE OR FALSE AND EXPLAIN FULLY ! (8 POINTS EACH OR 48 TOTAL POINTS). 1. Non-interest bearing notes payable are not saleable since no investor is willing to forego interest. 2. A loss contingency which is reasonably possible and reasonably estimable should be accrued and disclosed. 3. Other things being equal, the higher the perceived riskiness of the corporation issuing the bonds, the higher the price these bonds will command. 4. In a troubled debt restructuring, asymmetric accounting requires that any gain recognized by the debtor equal the loss recorded by the creditor. 5. When a company issues debt at a discount or premium, straight-line amortization of the discount or premium over the term of the debt is preferred. 6. Accruals developed to account for compensated absences require judgment since the anticipated wage levels in effect when the absences will be taken must be taken into consideration