A) can be converted into stock. B) mature in series of payments. C) can be redeemed by the issuer at any time at a specified price. D) mature in total on a specified future date. A) can be converted into stock. B) mature in series of payments. C) can be redeemed by the issuer at any time at a specified price. D) mature in total on a specified future date.

Exam 10: Reporting and Interpreting Liabilities

A company has current assets of $5 million and net income of $10 million. Current liabilities total $2.5 million, interest expense is $2 million, and income tax expense is $3 million. The times interest earned ratio for this company is:

(Multiple Choice)

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Question 101

Callable bonds

(Multiple Choice)

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Question 102

When bonds are retired at their maturity date, the balance in the Bonds Payable account is equal to the bond's

(Multiple Choice)

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Question 103

The issuance price of a bond does not depend on the method used to amortize the bond discount or premium.

(True/False)

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Question 104

What is the entry to record the payment at the maturity date of the note?

(Multiple Choice)

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Question 105

Current liabilities are due:

(Multiple Choice)

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Question 106

Using straight-line amortization, when a bond is sold at a discount:

(Multiple Choice)

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Question 107

The entry to record a bond retirement at maturity usually involves

(Multiple Choice)

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Question 108

A typical balance sheet provides no information regarding which of the following questions?

(Multiple Choice)

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Question 109

Your company issues $500,000 in bonds at an issue price of 98. The company will record:

(Multiple Choice)

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Question 110

Because interest rates have fallen, a company retires bonds which had been issued at their face value of $200,000. The company bought the bonds back at 97. This retirement would be recorded with a:

(Multiple Choice)

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Question 111

When the effective-interest method of amortization is used, what happens to interest expense as a bond moves toward maturity?

(Multiple Choice)

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Question 112

What journal entry will Backyard make when paying off the note and interest at maturity if the company's year-end is June 30? (Hint: Backyard's records were adjusted on June 30).

(Multiple Choice)

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Question 113

A company purchased equipment by issuing a $200,000, one-year, 8% note payable. The transaction would be recorded in the accounting records with a credit to

(Multiple Choice)

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Question 114

Your company sells $50,000 of bonds for an issue price of $52,000. Which of the following statements is correct?

(Multiple Choice)

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Question 115

A company issued 10-year, 8% bonds with a face value of $200,000. Interest is paid annually. The market rate on the issue date was 7.5% and the company received $206,948 in cash proceeds. Which of the following statements is true?

(Multiple Choice)

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Question 116

The method of bond amortization that results in varying amounts of amortization each period is the straight-line amortization method.

(True/False)

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Question 117

The net amount of a bond liability that appears on the balance sheet is equal to the face value of the bond plus any related discount or minus any related premium.

(True/False)

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Question 118

Callable bonds can be converted to stock.

(True/False)

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Question 119

Some bonds allow the issuing company to retire the bond with cash at any time. These bonds are known as:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 133

A company has current assets of $5 million and net income of $10 million. Current liabilities total $2.5 million, interest expense is $2 million, and income tax expense is $3 million. The times interest earned ratio for this company is:

Callable bonds

When bonds are retired at their maturity date, the balance in the Bonds Payable account is equal to the bond's

The issuance price of a bond does not depend on the method used to amortize the bond discount or premium.

What is the entry to record the payment at the maturity date of the note?

Current liabilities are due:

Using straight-line amortization, when a bond is sold at a discount:

The entry to record a bond retirement at maturity usually involves

A typical balance sheet provides no information regarding which of the following questions?

Your company issues $500,000 in bonds at an issue price of 98. The company will record:

Because interest rates have fallen, a company retires bonds which had been issued at their face value of $200,000. The company bought the bonds back at 97. This retirement would be recorded with a:

When the effective-interest method of amortization is used, what happens to interest expense as a bond moves toward maturity?

What journal entry will Backyard make when paying off the note and interest at maturity if the company's year-end is June 30? (Hint: Backyard's records were adjusted on June 30).

A company purchased equipment by issuing a $200,000, one-year, 8% note payable. The transaction would be recorded in the accounting records with a credit to

Your company sells $50,000 of bonds for an issue price of $52,000. Which of the following statements is correct?

A company issued 10-year, 8% bonds with a face value of $200,000. Interest is paid annually. The market rate on the issue date was 7.5% and the company received $206,948 in cash proceeds. Which of the following statements is true?

The method of bond amortization that results in varying amounts of amortization each period is the straight-line amortization method.

The net amount of a bond liability that appears on the balance sheet is equal to the face value of the bond plus any related discount or minus any related premium.

Callable bonds can be converted to stock.

Some bonds allow the issuing company to retire the bond with cash at any time. These bonds are known as:

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control and Financial Reporting for Cash and Merchandise Sales

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables, Bad Debt Expense, and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

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