Accounting Final Exam example #22639

23 March 2024
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The rate that a state assigns reflecting a company's stability or instability in employing workers is the:
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Merit Rating
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In order to be reported, liabilities must:
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Sometimes be estimated.
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Accounts Payable are
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amounts owed to suppliers for products and/or services purchased on credit
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FUTA taxes are
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unemployment taxes
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A short-term note payable
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A written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.
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Contingent liabilities are recorded or disclosed unless they are
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Remote
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An estimated liability
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Is a known obligation of an uncertain amount that can be reasonably estimated
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A company's fixed interest expense is $8,000, its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals
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4.0
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Recording employee payroll deductions may involve
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Liabilities to federal and state governments
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The Premium on Bonds Payable account is a(n)
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Adjunct liability account
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Registered Bonds
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bonds issued in the names and addresses of their holders
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secured bonds
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have specific assets of the issuer pledged as collateral for the bonds
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The discount on bonds payable account is
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a contra liability
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serial bonds
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bonds of a single issue that mature on different dates
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coupon bonds
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Bonds with interest coupons attached to their certificates; bondholders detach coupons when they mature and present them to a bank or broker for collection.
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callable bonds
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Bonds that give the issuer the option to retire them at a stated amount prior to maturity.
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a discount of bonds payable
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occurs when a company issues bonds with a contract rate less than the market rate
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Debenture
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a type of bond which is not collateralized but backed only by the issuer's general credit standing
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dividend yield is the percent of cash dividends paid to common shareholders relative to the
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common stock's market value
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A liquidating dividend is
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a return of a portion of the original investment back to the shareholders
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Treasury stock is classified as:
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contra equity account
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Par value of a stock refers to the
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Value assigned to a share of stock by the corporate charter
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The amount of income earned per share of a company's outstanding common stock is known as:
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earnings per share
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The Discount on Common Stock account reflects:
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The difference between the par value of stock and its issue price when the issue price is below par value.
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installment note
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an liability requiring a series of payments to the lender
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discounted notes
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a short-term debt obligation issued at a discount to par
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indenture
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the written agreement between the corporation and the lender detailing the terms of the debt issue
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investment notes
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guarantee investors that they will receive a return on their investment within a specified period of time and used by businesses to increase capital