November 24, 2020 1. Sinking fund bonds require the borrower to A. invest funds each year to retire the bonds at maturity B. convert to common stock before maturity C. pay interest detaching a coupon redeemable at a financial institution D. retire the entire issue E. None of the above are correct 2. A financial statement showing total current assets and total current liabilities is known as A. Congenital balance sheet B. Complex balance sheet C. Classified balance sheet D. Comprehensive balance sheet E. Comparative balance sheet 3. Which of the following states is deemed to be most friendly to publicly traded corporations? A. New York B. Delaware c. Nebraska D. California E. Texas 4. When accounting for a contingent liability, if the likelihood of the obligation is probable and the amount can be estimated, a company must A. provide disclosure in the footnotes to the financial statements. B. not recognize the liability until it is certain and the exact amount is known. C. treat it as a bona fide liability D. do nothing E. none of the above are correct 5. Long-term debt (bonds) would likely be used for which of the following? A. paying insurance premiums B. paying employee salaries C. purchasing inventory D. acquiring another company E. None are correct