ACC 206 Week 7 Quiz – Strayer



Click on the Link Below to Purchase A+ Graded Course Material

http://budapp.net/ACC-206-Accounting-Principles-II-Week-7-Quiz-Strayer-265.htm

Quiz 5 Chapter 15

CHAPTER15


LONG-TERMLIABILITIES


CHAPTERSTUDYOBJECTIVES


1.Explainwhybondsareissued.

2.Preparetheentriesfortheissuanceofbondsandinterestexpense.

3.Describetheentrieswhenbondsareredeemedorconverted.

4.Describetheaccountingforlong-termnotespayable.

5.Contrasttheaccountingforoperatingandcapitalleases.

6.Identifythemethodsforthepresentationandanalysisoflong-termliabilities.

7.Computethemarketpriceofabond.

8.Applytheeffective-interestmethodofamortizingbonddiscountandbondpremium.

a9.Applythestraight-linemethodofamortizingbonddiscountandbondpremium.




TRUE-FALSESTATEMENTS

1.     Eachbondholdermayvotefortheboardofdirectorsinproportiontothenumberofbonds held.

2.     Bondinterestpaidbyacorporationisanexpense,whereasdividendspaidarenotan expense of thecorporation.

3.     RegisteredbondsarebondsthataredeliveredtoownersbyU.S.registeredmailservice.

4.     Adebenturebondisanunsecuredbondwhichisissuedagainstthegeneralcreditofthe borrower.

5.     Bondsareaform of interest-bearingnotespayable.

6.     Neithercorporatebond interestnordividendsaredeductiblefor taxpurposes.

7.     A10%stockdividendistheequivalentofa$1,000parvaluebondpayingannualinterest of10%.

8.     Theholderofaconvertiblebondcanconvertaninterestpaymentreceivedintoacash dividend paidoncommonstock if thedividendisgreaterthantheinterestpayment.

9.     Theboardof directorsmayauthorizemorebondsthanare issued.

10.     Thecontractualinterestrateisalwaysequaltothemarketinterestrateonthedatethat bonds areissued.

11.     If$150,000face valuebondsareissuedat 102,theproceedsreceivedwill be$102,000.

12.     Discountonbondsisanadditionalcostofborrowingandshouldberecordedasinterest expense overthe lifeofthebonds.

13.     Ifacorporationissuedbondsatanamountlessthanfacevalue,itindicatesthatthe corporation hasaweakcreditrating.
Long-TermLiabilities     15-5

14.     Acorporationthatissuesbondsatadiscountwillrecognizeinterestexpenseatarate which is greaterthanthemarketinterestrate.

15.     Ifbondsareissuedatadiscount,theissuingcorporationwillpayaprincipalamountless thantheface amountof thebondsonthematuritydate.

16.     Ifbondsareissuedatapremium, thecarryingvalueofthebondswillbegreaterthanthe facevalueof thebondsfor allperiodspriortothebondmaturitydate.

17.     Ifthemarketinterestrateisgreaterthanthecontractualinterestrate,bondswillsellata discount.

18.     If$800,000,8%bondsareissuedonJanuary1,andpayinterestsemiannually,the amount of interestpaidon July1 willbe$32,000.

19.     Ifbonds sell atapremium, theinterestexpenserecognizedeach yearwillbegreaterthan thecontractualinterestrate.

20.     The carryingvalue ofbondsiscalculatedbyadding thebalanceoftheDiscountonBonds Payableaccountto thebalance intheBondsPayableaccount.

21.     Thelossonbondredemptionisthedifferencebetweenthecashpaidandthecarrying value of thebonds.

22.     If$200,000parvalue bondswithacarrying value of$190,400 areredeemedat97,aloss on redemptionwill berecorded.

23.     Gainsandlossesarenotrecognizedwhenconvertiblebondsareconvertedintocommon stock.

24.     Generally,convertiblebondsdonotpayinterest.

25.     Eachpaymentonamortgagenotepayableconsistsofinterestontheoriginalbalanceof theloan andareductionoftheloanprincipal.

26.     Along-term notethatpledgestitletospecificpropertyassecurityforaloanisknown asa mortgagepayable.

27.     A capitalleaserequiresthelesseetorecordthe leaseasapurchaseof anasset.

28.     Thetimesinterestearnedratiois computed bydividingnetincome byinterestexpense.

a29.    Thepresentvalueofabondisafunctionoftwovariables:(1)thepaymentamountsand (2)theinterest(discount)rate.

a30.     Theeffective-interestmethodofamortizationresultsinvaryingamountsofamortization and interestexpenseperperiodbut aconstantinterestrate.

Additional True-FalseQuestions

31.     Bondsthatmatureat asinglespecifiedfuturedatearecalledtermbonds.
15-6      

32.     Thetermsofthebondissuearesetforthinaformallegaldocumentcalledabond indenture.

33.     Thecarryingvalueof bondsatmaturityshouldbe equaltotheface valueof thebonds.

34.     PremiumonBondsPayableisacontraaccounttoBondsPayable.

35.     Whenbondsareconvertedintocommonstock,thecarryingvalueofthebondsis transferredto paid-incapital accounts.

36.     Operatingleasesareleasesthatthelesseemustcapitalizeonitsbalancesheetasan asset.

37.     Underacapitallease,thelease/assetisreportedonthebalancesheetunderplant assets.

38.     Long-termliabilitiesarereportedinaseparatesectionofthebalancesheetimmediately followingcurrent liabilities.





MULTIPLECHOICEQUESTIONS

39.     Eachof thefollowingiscorrectregarding bondsexcepttheyare a.aformofinterest-bearingnotespayable.
b.attractivetomanyinvestors.
c.issuedbycorporations andgovernmentalagencies. d.soldin largedenominations.

40.     Fromthestandpointoftheissuingcompany,adisadvantageofusingbondsasameans oflong-termfinancingisthat
a.bondinterestis deductiblefortaxpurposes.
b.interestmustbepaidonaperiodicbasisregardlessofearnings.
c.incometo stockholdersmayincreaseasaresultof tradingonthe equity. d.thebondholdersdonothavevotingrights.

41.     Ifacorporationissued$2,000,000inbondswhichpay10%annualinterest,whatisthe annual netcashcostof thisborrowingif theincometaxrateis30%?
a.$2,000,000 b.$60,000
c.$200,000 d.$140,000
Long-TermLiabilities     15-7

42.     Securedbondsarebondsthat
a.areinthepossessionof abank.
b.areregisteredinthenameof theowner.
c.havespecificassetsof the issuerpledged ascollateral. d.havedetachableinterestcoupons.

43.     Alegaldocumentwhichsummarizestherightsandprivilegesofbondholdersaswellas theobligationsandcommitmentsof theissuingcompanyiscalled
a.a bondindenture. b.abonddebenture.
c.tradingonthe equity. d.atermbond.

44.       Stockholdersofacompanymaybereluctanttofinanceexp

Comments

Post a Comment

Popular posts from this blog

PAD 500 Week 7 Assignment 3 – Strayer

Click On The Link Below To Purchase A+ Graded Material Instant Download http://budapp.net/PAD-500-Assignment-3-Strayer-NEW-PAD500A3.htm Assignment 3: The Concept of Program Reengineering Due Week 7 and worth 250 points Based on the Case Study: Mayor Schell’s Zero Homeless Family Strategy (PDF), write a 4-5 page paper in which you: 1.   Analyze four (4) policy choices of Mayor Schell that were made as part of the strategy for the homeless. 2.   Analyze the Pre-Implementation and Design Strategies of Mayor Schell and interpret four (4) practical outcomes of his choices. 3.   Reconstruct four (4) steps taken by Mayor Schell to reengineer the program in order to fit the new objectives. 4.   Analyze four (4) reasons for the importance of conducting assessments prior to new program implementation. 5.   Research at least four (4) peer-reviewed academic sources. Your assignment must:           ...
Read more

LEG 320 Week 7 Quiz – Strayer

Click on the Link Below to Purchase A+ Graded Course Material http://budapp.net/LEG-320-Week-7-Quiz-Strayer-448.htm Quiz 7 Chapter 12 and 13 CHAPTER 12 SEXUAL ASSAULT, RAPE, PROSTITUTION AND RELATED SEX CRIMES MULTIPLE CHOICE 1.         Sexual relations (nonmarital) become a crime in the United States if a. there is a lack of consent b. they are with a minor incapable of legally consenting c. they are with a mentally deficient person or an adult incapable of consenting d. all of these answers are correct                                  312     2.         Sexual relations (nonmarital) become a crime in the Uni...
Read more

HSA 530 Week 7 Assignment 2 – Strayer NEW

Click On The Link Below to Purchase A+ Graded Material Instant Download http://budapp.net/HSA-530-Assignment-2-Strayer-NEW-HSA530A2.htm Assignment 2: Human Resources Policies and Procedures Due Week 7 and worth 320 points Continuing with the scenario from Assignment 1, imagine that you have been hired as the Manager of Human Resources for the acute care hospital. Your first task is to create a set of policies and procedures to ensure that the organization’s HRM processes are aligned with the organization’s goals and objectives. You are also responsible for completing a hiring plan, training plan, compensation and benefits plan, and a performance appraisal. Write a six to eight (6-8) page paper in which you: 1.   Examine a significant way that the Joint Commission has influenced the basic functions of HRM and predict the likely impact of the policies and procedures at the your acute hospital. Provide support for your rationale. 2.   Analyze the importance...
Read more