Q1: On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7%. Based on this information, the carrying value of the bond liability on January 1, Year 6 is

A. 50,000

B. 48,500

C. 51,500

D.52,000

Q2: Which of the following would not likely appear on a classified balance sheet?

A. Current assets

B. Long-term liabilities

C. Current retained earnings

D. Long-term assets

Q3: True or False: The length of an operating cycle is the time it takes to turn cash into inventory, then inventory into accounts receivable, and then accounts receivable back into cash. This statement is

Q4: True or False A current asset is an asset that is cash or an asset that will be converted into cash within one year or one operating cycle whichever is shorter.