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
