Liabilities Overview and Management

A measure of a company's solvency is the:

The times interest earned is computed by dividing:

Liquidity ratios measure a company's:

The relationship between current assets and current liabilities is:

Parker Company issued ten-year, 9%, bonds payable in 2014 at a premium. During 2014, the company's accountant failed to amortize any of the bond premium. The omission of the premium amortization will:

When the straight-line method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated by:

When the straight-line method of amortization is used for a bond discount, the amount of interest expense for an interest period is calculated by:

If bonds are originally sold at a discount using the straight-line amortization method:

Which of the following statements regarding the effective interest method of accounting for bonds characteristics is false?

When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated by multiplying the:

The amortization of a bond premium will result in reporting an amount of interest expense for an interest period that:

The effective-interest method of amortization of bond premiums and discounts is considered superior to the straight-line method because it results in a(n):

Which of the following statements best describes the behavior over time of the components of equal mortgage payments?

Liabilities are classified on the balance sheet as current or:

Most companies pay current liabilities:

A current liability is a debt that can reasonably be expected to be paid:

Which of the following most likely would be classified as a current liability?

Failure to record a liability will probably:

Very often, failure to record a liability means failure to record a(n):

Current liabilities are due:

Liabilities are classified as current or long-term based on their:

Which of the following is not a current liability on December 31, 2014?

With an interest-bearing note, the amount of assets received upon issuance of the note is generally:

As interest is recorded on an interest-bearing note, the Interest Expense account is:

The interest charged on a $250,000 note payable, at the rate of 6%, on a 90-day note would be:

The interest charged on a $250,000 note payable, at the rate of 6%, on a 60-day note would be:

The interest charged on a $250,000 note payable, at the rate of 6%, for a year would be:

Interest expense on an interest-bearing note is:

Sales taxes collected by a retailer are recorded by:

Unearned Rent Revenue is:

The amount of sales tax collected by a retail store when making sales is:

A company receives $176, of which $16 is for sales tax. The journal entry to record the sale would include a:

A company receives $261, of which $21 is for sales tax. The journal entry to record the sale would include a:

The current portion of long-term debt should:

Sales taxes collected by a retailer from a customer are expenses of the:

A retailer that collects sales taxes is acting as an agent for the:

Sales taxes collected by a retailer are reported as:

Morgan Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $25,440. If the sales tax rate is 6%, what amount must be remitted to the state for February's sales taxes?

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that:

Secured bonds are bonds that:

A legal document that indicates the name of the issuer, the face value of the bond and such other data is called:

Stockholders of a company may be reluctant to finance expansion through issuing more equity because:

Which of the following is not an advantage of issuing bonds instead of common stock?

Bonds that are secured by real estate are termed:

Bonds that may be exchanged for common stock at the option of the bondholders are called:

Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called:

Bonds that are issued against the general credit of the borrower are called:

Corporations are granted the power to issue bonds through:

Bonds are not always categorized as:

Which of the following statements concerning bonds is not a true statement?

The contractual rate of interest is usually stated as a(n):

When authorizing bonds to be issued, the board of directors does not specify the:

Bonds with a face value of $300,000 and a quoted price of 102¼ have a selling price of:

The present value of a bond is also known as its:

All of the following statements regarding convertible bonds are true except:

The contractual interest rate on a bond is often referred to as the:

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at:

If the market rate of interest is greater than the contractual rate of interest, bonds will sell:

The interest expense recorded on an interest payment date is increased:

If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount:

If the market rate of interest is lower than the contractual interest rate, the bonds will sell at:

If bonds are issued at a premium, the stated interest rate is:

The present value of a $10,000, 5-year bond will be less than $10,000 if the:

The market value (present value) of a bond is a function of all of the following except the:

The market rate of interest is often called the:

If bonds are issued at a discount, it means that the:

Selling the bonds at a premium has the effect of:

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of:

The statement 'Bond prices vary inversely with changes in the market rate of interest' means that if the:

The carrying value of bonds will equal the market price:

Over the term of the bonds, the balance in the Discount on Bonds Payable account will:

The sale of bonds above face value:

In the balance sheet, the account Premium on Bonds Payable is:

In the balance sheet, the account Discount on Bonds Payable is:

Bond discount should be amortized to comply with:

The journal entry to record the issuance of bonds at a discount will include a:

If bonds have been issued at a discount, then over the life of the bonds the:

When bonds are retired before maturity:

Restoration Company issued bonds that had the following data associated with them: interest to be paid is $40,000. Interest expense to be recorded is $45,000. Which of the following characteristics is true?