1.Long-term debt:

Multiple Choice

• consists of monetary obligations that fall due beyond two years from the balance sheet date.

• when issued, is carried at an amount based on the proceeds received.

• usually has an effective yield that is much different than the cost of borrowing.

• never has any portion classified as a current liability.

2.Current liabilities are reported on the balance sheet at:

Multiple Choice

• current market value.

• historical cost.

• discounted present value.

• future value.

3.The Additional Paid-In Capital account is reported on the balance sheet at the

Multiple Choice

• current market value of the stock minus par value.

• original sales price of the stock minus the par value.

• net realizable value of the stock minus par value.

• discounted present value of the future dividends minus par value.

4.Other comprehensive income

Multiple Choice

• consists of certain gains and losses included in comprehensive income but not yet recognized in the income statement.

• is never adjusted for tax effects.

• does not include gains and losses.

• is consistently defined in international balance sheet presentation.