| Could you plz help me those questions? I literally struggled.. QUESTION 1 -
Which of the following is true regarding current portion of long-term debt? | | a. | is reported separately on the balance sheet, but not in the general ledger | | | b. | is listed on the balance sheet as a current liability | | | c. | it is the part of the liability amount that is expected to be paid within the next year | | | d. | all are true | 1 points QUESTION 2 -
Where on the balance sheet would a bond discount be reported? | | a. | under long-term liabilities, as an addition to the B/P | | | b. | under the investments section of assets, as a reduction to the B/P | | | c. | under long-term liabilities, with a reduction to the B/P | | | d. | under long-term assets, as an addition to the B/P | 1 points QUESTION 3 -
When a bondholder must send in a coupon to receive the interest payment, what kind of bond is it? | | a. | term bond | | | b. | registered bond | | | c. | serial bond | | | d. | bearer bond | 1 points QUESTION 4 -
A company sells a $100,000 B/P at 97. How much cash does the company receive? | | a. | $103,000 | | | b. | $100,000 | | | c. | $100,000 but only has to pay back $97,000 | | | d. | $97,000 | 1 points QUESTION 5 -
A $500,000 N/P is issued at 12%. Monthly payments are $30,000. How much of the first payment is interest? | | a. | $6,000 | | | b. | $25,000 | | | c. | $5,000 | | | d. | $30,000 | 1 points QUESTION 6 -
Joshua Corporation has current assets $45,000, long-term assets $230,000, current liabilities $36,000, long-term liabilities $100,000, NI $22,000. What is the debt to equity ratio? | | a. | 20.22% | | | b. | 49.45% | | | c. | 97.84% | | | d. | 50.55% | 1 points QUESTION 7 -
Bonds that mature on different dates are called | | a. | bond debenture | | | b. | term bonds | | | c. | serial bonds | | | d. | bond indenture | 1 points QUESTION 8 -
Which type of bonds are issued based on the good credit rating of the issuing company? | | a. | sinking fund bond | | | b. | serial bonds | | | c. | debendure bonds | | | d. | term bonds | 1 points QUESTION 9 -
Which ratio measures a company's ability to make interest payments? | | a. | debt to equity | | | b. | times interest earned | | | c. | return on interest | | | d. | ROE | 1 points QUESTION 10 -
Which of the following is true regarding B/P? | | a. | payment at maturity includes interest | | | b. | interest paid is tax deductible | | | c. | periodic payments include principle and interest | | | d. | dividends only have to be paid when declared by the board of directors | 1 points QUESTION 11 -
Karson Corporation issued a $200,000, 10 year B/P at a discount. What would this indicate? | | a. | face interest rate > market interest rate | | | b. | contractual interest rate < stated interest rate | | | c. | contractual interest rate > stated interest rate | | | d. | face interest rate < market interest rate | 1 points QUESTION 12 -
A company issues a 6 year, $400,000 B/P with face interest rate = 9% when the market interest rate = 10%. How much would the B/P sell for in the market? | | a. | $382,577 | | | b. | $372,745 | | | c. | $382,275 | | | d. | $389,850 | 1 points QUESTION 13 -
The carrying value of a B/P sold at a premium is | | a. | face value + unamortized premium | | | b. | face value - amortized premium | | | c. | face value + amortized premium | | | d. | |
