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Showing posts with label Accounting Chapter 14. Show all posts
Showing posts with label Accounting Chapter 14. Show all posts
Sunday, February 24, 2019

Note disclosures for long-term debt generally include all of the following except

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Note disclosures for long-term debt generally include all of the following except a. assets pledged as security. b. call provisions and conv...

The times interest earned ratio is computed by dividing

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The times interest earned ratio is computed by dividing a. net income by interest expense. b. income before taxes by interest expense. c. in...

The debt to total assets ratio is computed by dividing

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The debt to total assets ratio is computed by dividing a. current liabilities by total assets. b. long-term liabilities by total assets. c. ...

Long-term debt that matures within one year and is to be converted into stock should be reported

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Long-term debt that matures within one year and is to be converted into stock should be reported a. as a current liability. b. in a special ...

Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements?

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Which of the following must be disclosed relative to long-term debt maturities and sinking fund requirements? a. The present value of future...

When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless

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When a note payable is exchanged for property, goods, or services, the stated interest rate is presumed to be fair unless a. no interest rat...

Discount on Notes Payable is charged to interest expense

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Discount on Notes Payable is charged to interest expense a. equally over the life of the note. b. only in the year the note is issued. c. us...

Which of the following is an example of "off-balance-sheet financing"?

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Which of the following is an example of "off-balance-sheet financing"? 1. Non-consolidated subsidiary. 2. Special purpose entity. ...

When a business enterprise enters into what is referred to as off-balance-sheet financing, the company

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When a business enterprise enters into what is referred to as off-balance-sheet financing, the company a. is attempting to conceal the debt ...

The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as

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The generally accepted method of accounting for gains or losses from the early extinguishment of debt treats any gain or loss as a. an adjus...

"In-substance defeasance" is a term used to refer to an arrangement whereby

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"In-substance defeasance" is a term used to refer to an arrangement whereby a. a company gets another company to cover its payment...

A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation?

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A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that ple...

A debt instrument with no ready market is exchanged for property whose fair market value is currently indeterminable. When such a transaction takes place

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A debt instrument with no ready market is exchanged for property whose fair market value is currently indeterminable. When such a transactio...

When a note payable is issued for property, goods, or services, the present value of the note is measured by

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When a note payable is issued for property, goods, or services, the present value of the note is measured by a. the fair value of the proper...

The printing costs and legal fees associated with the issuance of bonds should

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The printing costs and legal fees associated with the issuance of bonds should a. be expensed when incurred. b. be reported as a deduction f...

Treasury bonds should be shown on the balance sheet as

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Treasury bonds should be shown on the balance sheet as a. an asset. b. a deduction from bonds payable issued to arrive at net bonds payable ...

An early extinguishment of bonds payable, which were originally issued at a premium, is made by purchase of the bonds between interest dates. At the time of reacquisition

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An early extinguishment of bonds payable, which were originally issued at a premium, is made by purchase of the bonds between interest dates...

When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will

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When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will a. increase if the bonds wer...

If bonds are issued between interest dates, the entry on the books of the issuing corporation could include a

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If bonds are issued between interest dates, the entry on the books of the issuing corporation could include a a. debit to Interest Payable. ...

When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the issuer will be

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When the interest payment dates of a bond are May 1 and November 1, and a bond issue is sold on June 1, the amount of cash received by the i...