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Amol Srivastava
Amol Srivastava, Accountant
Category: Finance
Satisfied Customers: 626
Experience:  More than 4years + of industry experience ,CFA level2 cleared, Chartered Accountant from India
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Question 1 2 points Save Current liabilities are

Resolved Question:

Question 1 2 points    Save    
Current liabilities are expected to be paid within one year or the operating cycle, whichever is longer.
    True
   False



   Question 2 2 points    Save    
During the month, a company sells goods for a total of $108,000, which includes sales taxes of $8,000; therefore, the company should recognize $100,000 in Sales Revenues and $8,000 in Sales Tax Expense.
    True
   False



   Question 3 2 points    Save    
Current maturities of long-term debt are often identified as long-term debt due within one year on the balance sheet.
    True
   False



   Question 4 2 points    Save    
Bond interest paid by a corporation is an expense, whereas dividends paid are not an expense of the corporation.
    True
   False



   Question 5 2 points    Save    
A debenture bond is an unsecured bond which is issued against the general credit of the borrower.
    True
   False



   Question 6 2 points    Save    
If $150,000 face value bonds are issued at 102, the proceeds received will be $102,000.
    True
   False



   Question 7 2 points    Save    
Discount on bonds is an additional cost of borrowing and should be recorded as interest expense over the life of the bonds.
    True
   False



   Question 8 2 points    Save    
A corporation that issues bonds at a discount will recognize interest expense at a rate which is greater than the market interest rate.
    True
   False



   Question 9 2 points    Save    
If bonds are issued at a discount, the issuing corporation will pay a principal amount less than the face amount of the bonds on the maturity date.
    True
   False



   Question 10 2 points    Save    
If bonds are issued at a premium, the carrying value of the bonds will be greater than the face value of the bonds for all periods prior to the bond maturity date.
    True
   False



   Question 11 2 points    Save    
If the market interest rate is greater than the contractual interest rate, bonds will sell at a discount.
    True
   False



   Question 12 2 points    Save    
If $800,000, 8% bonds are issued on January 1, and pay interest semiannually, the amount of interest paid on July 1 will be $32,000.
    True
   False



   Question 13 2 points    Save    
The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account.
    True
   False



   Question 14 2 points    Save    
The loss on bond redemption is the difference between the cash paid and the carrying value of the bonds.
    True
   False



   Question 15 2 points    Save    
Bonds that mature at a single specified future date are called term bonds.
    True
   False



   Question 16 2 points    Save    
The terms of the bond issue are set forth in a formal legal document called a bond indenture.
    True
   False



   Question 17 2 points    Save    
Premium on Bonds Payable is a contra account to Bonds Payable.
    True
   False



   Question 18 2 points    Save    
All of the following are reported as current liabilities except
    accounts payable.
   bonds payable.
   notes payable.
   unearned revenues.



   Question 19 2 points    Save    
Liabilities are classified on the balance sheet as current or
    deferred.
   unearned.
   long-term.
   accrued.



   Question 20 2 points    Save    
A corporation is not an entity which is separate and distinct from its owners.
    True
   False



   Question 21 2 points    Save    
A corporation must be incorporated in each state in which it does business.
    True
   False



   Question 22 2 points    Save    
A stockholder has the right to vote in the election of the board of directors.
    True
   False



   Question 23 2 points    Save    
A proxy is a legal document that instructs a stockholder's agent how to vote shares of stock for the stockholder.
    True
   False



   Question 24 2 points    Save    
Treasury stock should not be classified as a current asset.
    True
   False



   Question 25 2 points    Save    
Treasury stock purchased for $25 per share that is reissued at $20 per share, results in a Loss on Sale of Treasury Stock being recognized on the income statement.
    True
   False



   Question 26 2 points    Save    
A 3 for 1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock.
    True
   False



   Question 27 2 points    Save    
Retained earnings represents the amount of cash available for dividends.
    True
   False



   Question 28 2 points    Save    
Common Stock Dividends Distributable is shown within the Paid-in Capital subdivision of the stockholders' equity section of the balance sheet.
    True
   False



   Question 29 2 points    Save    
A dividend based on paid-in capital is termed a liquidating dividend.
    True
   False



   Question 30 2 points    Save    
The chief accounting officer in a company is known as the
    controller.
   treasurer.
   vice-president.
   president.



   Question 31 2 points    Save    
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that
    bond interest is deductible for tax purposes.
   interest must be paid on a periodic basis regardless of earnings.
   income to stockholders may increase as a result of trading on the equity.
   the bondholders do not have voting rights.



   Question 32 2 points    Save    
Investors who receive checks in their names for interest earned on bonds must hold
    registered bonds.
   coupon bonds.
   bearer bonds.
   direct bonds.



   Question 33 2 points    Save    
A bondholder that sends in a coupon to receive interest payments must have a(n)
    unsecured bond.
   bearer bond.
   mortgage bond.
   serial bond.



   Question 34 2 points    Save    
A $1,000 face value bond with a quoted price of 98 is selling for
    $1,000.
   $980.
   $908.
   $98.



   Question 35 2 points    Save    
A bond with a face value of $100,000 and a quoted price of 102 1/4 has a selling price of
    $120,225.
   $102,025.
   $100,225.
   $102,250.



   Question 36 2 points    Save    
Mendez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2008, at 103. The journal entry to record the issuance will show a
    debit to Cash of $2,000,000.
   credit to Premium on Bonds Payable for $60,000.
   credit to Bonds Payable for $2,030,000.
   credit to Cash for $2,060,000.



   Question 37 2 points    Save    
On the date of issue, Chudzick Corporation sells $2 million of 5-year bonds at 97. The entry to record the sale will include the following debits and credits:

    1
   2
   3
   4



   Question 38 2 points    Save    
Becker Company is a publicly held corporation whose $1 par value stock is actively traded at $20 per share. The company issued 2,000 shares of stock to acquire land recently advertised at $50,000. When recording this transaction, Becker Company will
    debit Land for $50,000.
   credit Common Stock for $40,000.
   debit Land for $40,000.
   credit Paid-In Capital in Excess of Par Value for $48,000.



   Question 39 2 points    Save    
New Corp. issues 1,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to
    Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $4,000.
   Common Stock $14,000.
   Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000.
   Common Stock $10,000 and Retained Earnings $4,000.



   Question 40 2 points    Save    
Kim, Inc. issued 5,000 shares of stock at a stated value of $10/share. The total issue of stock sold for $15/share. The journal entry to record this transaction would include a
    debit to Cash for $50,000.
   credit to Common Stock for $50,000.
   credit to Paid-in Capital in Excess of Par Value for $25,000.
   credit to Common Stock for $75,000.



   Question 41 2 points    Save    
Rancho Corporation sold 100 shares of treasury stock for $40 per share. The cost for the shares was $30. The entry to record the sale will include a
    credit to Gain on Sale of Treasury Stock for $3,000.
   credit to Paid-in Capital from Treasury Stock for $1,000.
   debit to Paid-in Capital in Excess of Par Value for $1,000.
   credit to Treasury Stock for $4,000.



   Question 42 2 points    Save    
Each of the following is correct regarding treasury stock except that it has been
    issued.
   fully paid for.
   reacquired.
   retired.



   Question 43 2 points    Save    
Dividends in arrears on cumulative preferred stock
    never have to be paid.
   must be paid before common stockholders can receive a dividend.
   should be recorded as a current liability until they are paid.
   enable the preferred stockholders to share equally in corporate earnings with the common stockholders.



   Question 44 2 points    Save    
The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to
    decrease total liabilities and stockholders' equity.
   increase total expenses and total liabilities.
   increase total assets and stockholders' equity.
   decrease total assets and stockholders' equity.



   Question 45 2 points    Save    
If a corporation declares a 10% stock dividend on its common stock, the account to be debited on the date of declaration is
    Common Stock Dividends Distributable.
   Common Stock.
   Paid-in Capital in Excess of Par.
   Retained Earnings.



   Question 46 2 points    Save    
Which of the following is not a significant date with respect to dividends?
    The declaration date
   The incorporation date
   The record date
   The payment date



   Question 47 2 points    Save    
On the dividend record date,
    a dividend becomes a current obligation.
   no entry is required.
   an entry may be required if it is a stock dividend.
   Dividends Payable is debited.



   Question 48 2 points    Save    
The declaration and distribution of a stock dividend will
    increase total stockholders' equity.
   increase total assets.
   decrease total assets.
   have no effect on total assets.



   Question 49 2 points    Save    
On January 1, Sandford Corporation had 80,000 shares of $10 par value common stock outstanding. On June 17, the company declared a 10% stock dividend to stockholders of record on June 20. Market value of the stock was $15 on June 17. The entry to record the transaction of June 17 would include a
    debit to Retained Earnings for $120,000.
   credit to Cash for $120,000.
   credit to Common Stock Dividends Distributable for $120,000.
   credit to Common Stock Dividends Distributable for $40,000.



   Question 50 2 points    Save    
A prior period adjustment that corrects income of a prior period requires that an entry be made to
    an income statement account.
   a current year revenue or expense account.
   the retained earnings account.
   an asset account.
Submitted: 5 years ago.
Category: Finance
Expert:  Manal Elkhoshkhany replied 5 years ago.

Hello

 

Please advise your deadline for these questions

 

Regards,

Customer: replied 5 years ago.
This friday
Expert:  Amol Srivastava replied 5 years ago.
Hi

To get answers click here

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Regards
Amol
Amol Srivastava, Accountant
Category: Finance
Satisfied Customers: 626
Experience: More than 4years + of industry experience ,CFA level2 cleared, Chartered Accountant from India
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