When convertible bonds are submitted for conversion,all of the following must be updated except:
A) Bond premium or discount
B) Accrued interest
C) Cash
D) Foreign exchange gains and losses on foreign currency denominated debt

Question

Quizplus · Accepted Answer

When convertible bonds are submitted for conversion, the bond premium or discount and accrued interest must be updated, and any foreign exchange gains and losses on foreign currency denominated debt may need to be recognized. However, cash is not updated as conversion of the bonds results in the issuance of stock, not a cash transaction.

When Convertible Bonds Are Submitted for Conversion,all of the Following