1. Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below. are distributions of a corporation's earnings to stockholders. a. Profits b. Revenues c. Stocks d. Dividends 2. A debit balance in Retained Earnings is known as a a. deficit. b. surplus. C. net loss. d. None of these choices are correct. Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below. 1. Corporations finance their operations through which of the following sources? a. Short-term debt, such as purchasing goods or services on account b. Long-term debt, such as issuing bonds or notes payable c. Equity, such as issuing common or preferred stock d. All of these choices are correct. 2. The decision to issue debt or equity is influenced by the effect that various financing alternatives will have on a. EPS. b. net Income. C. interest expense. d. All of these choices are correct. Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below. 1. The interest rate to be paid on the face amount of the bond is called the a. contract rate. b. effective rate. c. discount rate. d. premium. 2. When a corporation issues bonds, the proceeds received for the bonds will depend on a. the face amount of the bonds. b. the interest rate on the bonds. c. the market rate of interest for similar bonds. d. All of these choices are correct. Click to watch the Tell Me More Learning Objective 3 video and then answer the questions below. 1. When bonds are issued at their face amount, the journal entry will include a a. credit to Premium on Bonds Payable b. debit to Discount on Bonds Payable c. credit to Cash d. credit to Bonds Payable 2. The semiannual interest payment on a $10,000, 5% bond is a. $250 b. $500 c. $2,500 d. None of these choices are correct. 3. The journal entry to record the amortization of a bond discount includes a a. a debit to Discount on Bonds Payable b. a credit to Discount on Bonds Payable c. a credit to Interest Expense d. All of these choices are correct. 4. The entry to amortize a bond premium would include a a. a debit to Premium on Bonds Payable b. a credit to Premium on Bonds Payable c. a credit to Interest Expense d. All of these choices are correct