Accounting

6- A statement of cash flows: A) Is typically prepared at the request of major creditors. B) May be combined with the balance sheet. C) May be combined with the income statement at the option of management. D) Is a basic financial statement required for publicly-held companies. 7. The bond obligates the issuing company to pay the par value of the bond at a specific future time called: A) Issuing date. B) Due date. C) Maturity date. D) Payment date. 8- Shareholder equity is divided into: A) Retained earnings and ordinary shares. B) Retained earnings and preference shares. C) Retained earnings and paid-in-capital. D) Ordinary shares and preference share 9-The current ratio is calculated as: A) Current assets divided by total liabilities. B) Current assets divided by current liabilities. C) Current assets times current liabilities. D) Total assets divided by total liabilities. 10-The price a person can buy or sell one company's shares for, is called: A) Book Value. B) Market Value. C) Historical Value. D) Liquidation Value C- SHORT ANSWER 1- Compute the price of the following bonds: A 15200,000 issued at 77.75%. B) $200,000 issued at 103.50%. C) $200,000 issued at 94.25%. D) $200,000 issued at 102.50%. 2- Determine whether the following bonds payable will be issued at par value, at a premium, or ata discount: A) The market interest rate is 7%. Coconut Corp. issues bonds payable with a stated rate of 6.5%. B) Sony, Inc., issued 6% bonds payable when the market rate was 5.75% C) XYZ Corporation issued 3% bonds when the market interest rate was 3%. D) Moon Company issued bonds payable that pay stated interest of 8%. At issuance, the market interest rate was 8.25%