Accounting Final Chp. 9-12

if the market interest rate for a bond is higher than the stated interest rate, the bond will sell at

a discount

which of the following is not a current liability on december 31 2014

a lawsuit judgement to be decided on january 10 2015

in preparing a statement of cash flows, a conversion of bonds into common stock will be reported in

a separate schedule or note to the financial statements

the amount of stock that may be issued according to the corporations charter is referred to as the

authorized stock

a patent should

be amortized over its useful life or 20 years, whichever is shorter

that category that is generally considered to be the best measure of a company's ability to continue as a going concern is

cash flows from operating activities

if a company has both an inflow and outflow of cash related to property, plant, and equipment, the ________ in the investing activities section

cash inflow and cash outflow must be reported seperately

yanik corporation issues 4000 10 year 8% 1000 bonds dated january 1 2014 at 97. the journal entry to record the issuance will show a

debit to discounts on bonds payable for $120000

which of the following is a correct statement regarding the disposal of an asset for no proceeds

if the asset is not fully depreciated, a gain on the disposal can occur

using an accelerated depreciation method (DDB) will cause a profitable company to incur

less taxes in early years of the assets use as compared to later years

the present value of a bond is also known as its

market price

the statement of cash flows

summarizes the operating, financing, and investing activities of an entity

when an asset is fully depreciated

the book value is equal to the residual value, and the asset has reached the end of its estimated useful life

which of the following would not create a cash flow

the company converts bonds into common stock

moss county bank agrees to lend the sadowski brick company $300000 6% 9 month note. the entry made by sadowski brick company on january 1 to record the proceeds and issuance of the note is

cash is debited by $300000; notes payable is credited by $300000

which of the following activities would be classified as an investing activity

cash paid (loaned) to a borrower as a loan

on the statement of cash flows, the cash flows from operating activities section would include

cash receipts from sales activities

the chief accounting officer in a company is known as the

controller

johnson company issued 900 shares of no par common stock for $15300. which of the following journal entries would be made if the stock has no stated value

debit cash for $15300; credit common stock - no par value for $15300

the portion of the cost of natural resources that is consumed in a particular period is called

depletion expense

which of the following most likely would be classified as a current liability

dividends payable

which of the following depreciation methods best applies to those assets that generate greater revenue earlier in their useful lives

double declining balance method

costs that do not extend the assets capacity or its useful life, but merely maintain the asset or restore it to working order are recorded as

expenses

a corporation records a dividend related liability

on the declaration date

cash receipts from interest and dividends are classified as

operating activities

the order of presentation of activities on the statement of cash flows is

operating, investing, and financing

the number of shares of issued stock equals

outstanding shares plus treasury shares

if norben company issues 4000 shares of $5 par value common stock for $140000, the account

paid in capital in excess of par value will be credited for $120000

which of the following depreciation methods best fits those assets that tend to wear out before they become obsolete

units of production method