In: Accounting
Question 1 |
For many companies, current liabilities include
accounts payable |
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interest payable |
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short-term notes payable |
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all of the above |
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Question 2 |
A company issues a $15,000, 5.5% note due in 90-days. How much interest will be due at maturity? (Use a 360-day year. Round answers to two decimal places.)
$825.00 |
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$206.25 |
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none of the above |
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Question 4 |
See the previous question. On August 30, the due date of the account payable, what entry would our company make if they paid the account in full?
Notes Payable
900,000 |
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Accounts Payable
900,000 |
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Accounts
Payable
891,000 |
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Question 5
Convertible bonds may be ____.
Retired early at the option of the issuing corporation |
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Retired early at the option of the investor |
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Converted into common stock at the option of the investor |
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Question 6 |
Bonds payable are usually classified under ____.
Contingent liabilities |
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Long-term liabilities |
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Only in the notes to the financial statements |
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Question 7 |
A(n) ____ is a series of cash payments or receipts spaced equally in time.
present value |
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annuity |
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Premium |
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Question 8 |
If the market rate is HIGHER than the contract rate, the bonds will sell at ____.
A premium |
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A discount |
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Face amount |
Question 16 |
A long term liability is a debt that can reasonably expected to be paid
between 6 months and 18 months. |
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out of current years revenues. |
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at a period of time longer than one year. |
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Question 22 |
Bonds with a face amount $700,000, are sold at 102. The entry to record the issuance is
Cash
700,000 |
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Cash
714,000 |
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Cash
714,000 |
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Question 25 |
For many companies, current liabilities include
accounts payable |
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accounts receivable |
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short-term notes payable |
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‘a’ and ‘c’ only |