acct final SI

paid in capital from treasury stock

the excess of sales price of treasury stock over its cost should be credited to

secured bonds

the issuer provides collateral to back up their required payments, which the creditor can repossess upon failed payments

remain constant regardless of the issuance price

under the effective interest method, the cash paid on each interest payment date will:

equity decreases

when a corporation declares a cash dividend, which of the following is true?

equity decreases

when a corporation declares a stock dividend, which of the following is true

the stated rate of interest is less than the market rate of interest at the time of issue

when will bonds sell at a discount?

portion of long term debt due within one year

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

a $1000 bond sold for $1012.50

if bonds are issued at 101.25, this means that

decrease as the bonds approach their maturity date

if bonds were initially issued at a premium, the carrying value of the bonds on the issuer's books will:

double taxation of dividends

One of the main disadvantages of the corporate form is the:

if it desires to make an investment in its own stock and is reported as an asset

all of the following are reasons that a corporation may purchase treasury stock except: a. if it needs the stock for its employee stock bonus program. b. if it desires to make an investment in its own stock and is reported as an asset. c. to buy out the ownership of stockholders. d. to increase the reported amount of earnings per share.

financing activities

cash paid for preferred stock dividends should be shown on the statement of cash flows under

due and payable within one year

current liabilities are

convertible bonds

debt that allows the creditor to swap it for other securities, typically common stock

junk bonds

debt that does not have collateral to back it up and is relatively risky. this comes with a high rate of interest payment

unsecured bonds

debt that does not have collateral to back it up, often called debentures

callable bonds

debt that gives the issuer the opportunity to pay off the remaining interest and principal before maturity date

number of shares that the corporation has sold

issued shares represent the

dividends are distributed to preferred stockholders before common stockholders

many stockholders choose to invest in preferred stock because