1. The accounts payable turnover ratio is equal to ________ divided by average ________.

A.cost of goods sold; accounts payable

B.debt; common stockholders' equity

C.longminusterm debt; common stockholders' equity

D.debt; total assets

2.The discount on bonds payable:

A.decreases the amount of cash paid to bondholders over the stated rate of interest

B.increases the amount of cash paid to bondholders over the stated rate of interest

C.increases interest expense on the income statement

D.reduces interest expense on the income statement

3.Under the effectiveminusinterest method of amortization, interest expense each period can be calculated by multiplying the:

A.carrying value of the bonds times theeffectiveminusinterest rate for the appropriate time period

B.face value of the bonds times the stated interest rate for the appropriate time period

C.face value of the bonds times theeffectiveminusinterest rate for the appropriate time period

D.carrying value of the bonds times the stated interest rate for the appropriate time period

4.Failure to record an accrued liability causes a company to:

A.overstate expenses

B.overstate liabilities

C.overstate owners' equity

D.overstate assets