Which of the following statements is true of a trial balance?

A.trial balance is the first step in the accounting cycle.

B.trial balance is also known as a balance sheet.

C.A trial balance is also known as the chart of accounts.

D.A trial balance is a list of all accounts with their balances.

The interest rate on the bond certificate is stated as a(n) _____________.

A.annual rate

B.quarterly rate

C.semiannualrate

D.monthly rate

A corporation is a business organized under _____________ law that is a separate legal entity.

A.county

B.federal

C.state

D.city

Term bonds _________________.

A.are bonds that are all due at a specified time

B.are backed by the good credit rating of the business

C.are backed by the assets of the business

D.are bonds that are due in installments at regular intervals

Acker Company decides to issue 4,000 shares of $45 par, 5% preferred stock at $70 per share. The journal entry to record this transaction would be:

A.

Cash	280,000
Preferred Stock$45 Par Value		180,000
Paidin Capital in Excess of Par Preferred		100,000

B.

Cash	280,000
Preferred Stock$45 Par Value		280,000

C.

Cash	180,000
Preferred Stock$45 Par Value		80,000
Paidin Capital in Excess of Par Preferred		100,000

D.

Cash	180,000
Preferred Stock$45 Par Value		180,000