17. A $20 million, 20 year term bond issued in 1982 is coming due in 2002, i.e., the entire principal is payable at the maturity date in 2002. At the end of the calendar and fiscal year 2001, how will this bond be disclosed?A)As a $20 million long-term liability. B)As a $20 million current liability. C)As a $1 million current liability and zero in long-term liabilities. D)As a $1 million long-term liability. 18. Callable bonds may beA)turned in for early retirement at the option of the bondholder. B)converted to common stock at the option of the bondholder. C)called for early retirement at the option of the issuer. D)converted to registered bonds at the option of the company president. 19. Which of the following statements is correct?A)Bonds are always issued (sold) at their par value. B)Bonds issued at more than par value are said to be issued at a discount. C)Once bonds are issued, the bonds will trade in the bond market at-, above-, or below par value depending on changes in interest rates. D)Bondholders must hold their bonds to maturity to receive cash for their investment. E)None of the above is correct. 20. If a bond is sold at 98, its stated rate of interest would beA)higher than the market rate. B)lower than the market rate. C)equal to the market rate. D)unrelated to the market rate. E)None of the above is correct. 21. On January 1, 20A, A-Ace Corp. issued $3,000,000 par value 12%, 10 year bonds which pay interest each December 31. If the market rate of interest was 14%, the issue price of the bonds should be? (The present value factor for $1 in 10 periods at 12% is .3220 and at 14% is .2697. The present value of an annuity of $1 factor for 10 periods at 12% is 5.6502 and at 14% is 5.2161.)A)$3,339,084 B)$2,843,172 C)$3,000,000 D)$2,686,896 E)None of the above is correct. 22.

Haloran reported the following asset and liability balances at the end of 20D and 20E

	20D	20E
Total Assets	$6,800,000	$7,600,000
Total Liabilities	$3,200,000	$3,600,000
Cash	$750,000	$920,000

During 20E, cash dividends of $80,000 were declared and paid. Additional capital stock was issued for $100,000. Therefore, the net income (or net loss) for 20E was

A)$400,000 B)$480,000 C)$380,000 D)$300,000 E)none of the above. 23. From an investor's viewpoint, in today's litigious environment, what would be considered the most advantageous characteristic of the corporate form of organization?A)Taxation. B)Ease of capital assembly. C)Continuity of life for the corporation. D)Limited liability for stockholders. 24. Spot Corporation declared a cash dividend on December 30, 20A, payable on January 10, 20B. A journal entry for the dividend was not made in December 20A. The effects on the 20A financial statements wereA)retained earnings and liabilities were understated. B)retained earnings and liabilities were overstated. C)expenses were understated. D)retained earnings was overstated and cash understated. E)retained earnings was overstated and liabilities understated. 25. On December 15, 2009, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2010 of $.80 per share on the 2,000,000 common shares outstanding. The accounting period ends December 31. Because of this action, on December 15, 2009, Cross Corporation shouldA)make no journal entry because the event had no effect on the corporation's financial position until 2010. B)decrease retained earnings $1.6 million and increase contributed capital $1.6 million. C)decrease retained earnings $1.6 million and increase liabilities by $1.6 million. D)decrease cash $1.6 million and decrease retained earnings $1.6 million. E)increase contributed capital $1.6 million and decrease liabilities $1.6 million. 26. Slick Willie, Inc., had the following shares outstanding during 2008:(a) Preferred stock, 7%, $50 par value, cumulative, 1,000 shares with dividends in arrears for 2006 and 2007.(b) Common stock, $100 par value, 2,000 shares. The total dividends declared for the current year were $50,000. The total amount of dividends to which the preferred stockholders are entitled isA)$3,500. B)$7,000. C)$10,500. D)$12,000. E)None of the above is correct. 27. Common stockholders have the right toA)sell their stock. B)share in any dividends distributed to common stockholders. C)have the first opportunity to purchase any additional shares of common stock issued by the corporation. D)vote at stockholders' meetings. E)All of the above are true. 28. Wide World Corporation issued a 3-for-2 stock split (i.e., three new shares in exchange for each two old shares turned in) of its common stock which had a par value of $100 before the split. What dollar amount of retained earnings should be transferred to the common stock account?A)Par value of $100 per share. B)Market value per share on the issue date. C)Half of the previous total amount in the common stock account(s). D)None should be transferred. E)None of the above is correct. 29. Raceway Company reported the following balance sheet amounts at December 31, 2007

Current assets	$70,000
Current liabilities	40,000
Long-term liabilities	90,000
Operational assets	200,000
Common stock, par $10 (10,000 shares issued at par)	100,000

The total amount of retained earnings on December 31, 2007, wasA)$50,000. B)$40,000. C)$30,000. D)$20,000. E)None of the above is correct. 30. Which of the following statements about a corporation is false?A)Corporations are the dominant form of business because the vast majority of U.S. businesses are incorporated. B)Their owners have limited liability. C)Corporations allow even small investors to participate in ownership. D)Corporations are separate legal entities from their owners. E)None of the above is false. 31. In 2001, Genentech had 535.3 million average common shares outstanding, actual shares outstanding at year-end of 528.3 million and reported earnings per share of $.28. Genentech's reported net income in 2001 equalsA)$149.9 million. B)$147.9 million. C)$148.9 million. D)an amount that cannot be computed with the given information.