A bond sells at a discount when the Contract rate is above…

A bond sells at a discount when the:
Contract rate is above the market rate.
Contract rate is equal to the market rate.
Contract rate is below the market rate.
Bond has a short-term life.
A company issued 60 shares of $100 par value stock for $7,000 cash. The total amount of contributed capital in excess of par is:
100.
600.
1,000.
6,000.
A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:
A debit to Contributed Capital in Excess of Par Value, Common Stock for $42,000.
A debit to Cash for $140,000.
A credit to Common Stock for 182,000.
A credit to Common Stock for 140,000.
Shamrock Company had net income of $30,000. On January 1, the number of shares of common stock outstanding was 8,000. On April 1, the company issued an additional 2,000 shares of common stock. The company declared a $2,700 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. The company's earnings per share is:
2.87.
2.73.
3.41.
3.16.
A company issued 60 shares of $100 par value stock for $7,000 cash. The total amount of contributed capital is:
100.
600.
1,000.
7,000.
The right of common shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of common stock issued by the corporation is called a:
Preemptive right.
Proxy right.
Right to call.
Financial leverage.
Owners of preferred stock often do not have:
Ownership rights to assets of the corporation.
Voting rights.
Preference to dividends.
The right to sell their stock on the open market.
The Discount on Common Stock account reflects:
The difference between the par value of stock and its issue price when it is issued at a price below par value.
One share's portion of the issued corporation's net assets recorded in its accounts.
The difference between the par value of the stock and the amount contributed by stockholders when the amount contributed is more than par value.
An amount of assets defined by state law that stockholders must invest and leave invested in a corporation.
The board of directors of a corporation:
Are elected by the corporate registrar.
Are responsible for day-to-day operations of the business.
Do not have the power to bind the corporation to contracts, due to lack of mutual agency.
Are responsible for and have final authority for managing corporate activities.
A proxy is:
A legal document that gives a designated agent of a stockholder the power to vote the stock.
A contractual commitment by an investor to purchase unissued shares of stock.
An amount of assets defined by state law that stockholders must invest and leave invested in a corporation.
The right of common stockholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common stock issued by the corporation.
at the end of the accounting period, the owners of debt securities:
Must report the dividend income accrued on the debt securities.
Must retire the debt.
Must record a gain or loss on the interest income earned.
Must accrue interest earned on the debt securities.
A company owns $100,000 of 9% bonds that pay interest on October 1 and April 1. The amount of interest accrued on December 31 (the company's year-end) would be:
750. 1500. 2250. 4500.
A company paid $37,800 plus a broker's fee of $525 to acquire 8% bonds with a $40,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal:
37,800. 38,325.40,000. 40,525.
Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
Financing activities.
nvesting activities.
Operating activities.
Direct activities.
Short-term investments in held-to-maturity debt securities are accounted for using the: Market value method with market adjustment to income.
Market value method with market adjustment to equity.
Cost method with amortization.
Cost method without amortization.
Investments in trading securities:
Include only equity securities.
Are reported as current assets
Include only debt securities.
Are reported at their cost, no matter what their market value.
A statement of cash flows should reconcile the differences between the beginning and ending balances of: Net income. Equity.Cash and cash equivalents. Working capital.