Question 31 A corporate bond with a face value of $1,000 is issued at 105. This means that the bond actually sold for: O $105 and the stated interest rate was higher than the market interest rate. O $1,050 and the stated interest rate was lower than the market Interest rate o $1.050 and the stated interest rate was higher than the market interest rate $105 and the stated interest rate was lower than the market interest rate Previous D Question 32 Bonds allow a company to borrow large sums of money from many different investors. False True . Previous Question 33 Which of the following is an advantage of debt financing? O It reduces stockholder control. o It does not have to be repaid. Interest is tax deductible. Interest is discretionary. Question 34 Which of the following below correctly states the sequence of dates related to dividends on common stock Date of record-Declaration date Date of payment Declaration date, Date of record, Date of payment Board of directors date. Date of declaration Date of payment Declaration date Date of Payment Date of distribution . Previous Question 35 The par value of stock indicates what the stock is worth. True O False Question 37 What kind of account is Deferred Revenue? O Asset Revenue Liability Expense D Question 39 Which number is potentially the largest? The number of shares certified. The number of shares authorized. The number of shares issued. The number of shares outstanding, Question 40 The law requires _ _ to pay FICA taxes. o the employer only retailers the employee both employee and employer Question 41 Dime Corp. issued $100,000 of bonds at a premium; as a result, the company: received more than $100,000 received $100,000 received less than $100,000 will pay the bondholders more money on the maturity date than it received on the issue date Previous Question 42 When interest expense is calculated using the effective interest amortization method, interest expense on a bond that interesan t e maturity value of the bonds payable multiplied by the effective interest rate actual amount of interest paid carrying value of the bonds payable multiplied by the effective interest rate carrying value of the bonds payable multiplied by the stated interest rate Previous Question 43 Kipper, Inc. issues 2 million shares of preferred stock with a par value of $2 at its market price of $26 per share. The issuance should be recorded with a debatte o $4 million and a credit to Preferred Stock for $4 million. $52 million, a credit to Preferred Stock for $4 million, and a credit to Additional Paid-in Capital for $48 million. $52 million, a credit to Additional Paid-in Capital for $4 million, and a credit to Preferred Stock for $48 million. $52 million and a credit to Preferred Stock for $52 million Previous Question 44 Treasury stock: o is a contra-equity account. is an asset account. does not appear on the balance sheet. is recorded as additional paid-in capital. Question 45 A stock split increases total stockholders' equity. True False Question 46 On September 1, Sky Mountain Co. borrowed $200,000 on a 6%, 9-month note payable to Coast National Bank Given no previous adjusting entries have been re Mountain's adjusting entry four months later at December 31 would include a: o debit to Interest Expense of $3,000. o debit to Interest Expense of $9,000. debit to Interest Expense of $12,000. o debit to Interest Expense of $4,000. Previous Eructions Question 47 The Payroll records of Oregon Mist contained the following information for the month of November: Salaries FICA Taxes - Esployee FICA Taxes - Employer Federal Unemployment Taxes State Unemployment Taxes $ 350, eee 21,7ee 21,700 3,500 1,750 The journal entry to record the monthly Payroll Tax Expense would include a: debit to Payroll Tax Expense of $48,650. debit to Payroll Tax Expense of $25,200. credit to FICA Taxes Payable of $43.400 deblt to Payroll Tax Expense of $26.950. Previous penonlock th e Question 48 Advantages of equity financing over debt financing include that: dividends are tax deductible. stockholders' control will increase dividends are mandatory. equity financing does not require repayment. Question 49 Aliability for dividends is recorded on the declaration date. True False Question 50 Ownership structure can vary from one company to another, but the most basic form of corporation offers: O common stock treasury stock net income O preferred stock Previous