TRUE OR FALSE 1. The present value of an annuity factor for 6 years at 10% is 4.3553. This implies that an annuity of six $2000 payments at 10% would equal $8710.60. 2. Treasury stock is stock that has been authorized, issued, and is outstanding. 3. A 10-year bond issue with a $100,000 par value, 8% annual contract rate, with interest payable semiannually means that the issuer must repay $100,000 at the end of 10 years and make 20 semiannual interest payments of $4000 each. 4. Payments on installment notes normally include accrued interest plus a portion of the principal amount borrowed. 5. Return on equity increases when the expected rate of return from the acquired assets is 6. higher than the interest rate on the debt issued to finance the acquired assets. 6. Minimum legal capital requirements are intended to protect creditors by requiring a minimum level of legal minimum. 7. Retained earnings generally consist of a company's cumulative net income less any net losses and dividends declared since its inception. 8. A discount on bonds payable occurs when a company issues bonds with an issue price less than par value. 9. When no-par stock is not assigned a stated value, the total amount received is recorded as Common Stock. 10. If a corporation receives assets other than cash in exchange for stock, it records the assets received at their market value as of the date of the transaction