ACC 100 FINAL EXAM COMPREHENSIVE TEST
2026 STUDY GUIDE SOLVED QUESTIONS
◉ of the customers. Answer: sales taxes collected by a retailer from a
customer are expenses:
◉ payroll tax payable. Answer: companies are required to withhold
a variety of amounts for their employees from their paychecks which
they must then pay to other parties
◉ dr s and w payable cr cash. Answer: journal entry to record
payment of salaries and wages to employees
◉ salaries and wages expense. Answer: dr account in employee
portion of taxes
◉ payroll tax expense. Answer: dr account in employer portion of
taxes
◉ bonds. Answer: a form of interest-bearing notes payable issued by
corporations, universities, and governmental agencies
◉ bondholder. Answer: whoever buys the bond
,◉ issuer. Answer: the individual or business organization selling a
bond
◉ financing. Answer: what business activity are we engaging in
when issuing bonds?
◉ better chance of payoff & higher legal claim (in event of
bankruptcy). Answer: why would people buy bond instead of stock?
◉ secured bond. Answer: specific assets of the issuer pledged as
collateral- more frequent with small companies or companies with
poor credit
◉ unsecured bond. Answer: no collateral- frequently used by large
corporations with good credit ratings
◉ convertible bonds. Answer: bondholder can convert the bond into
shares of common stock- good for bondholder bc benefit if market
price increases, good for issuer bc higher price and lower interest
◉ callable bonds. Answer: issuer can buy the bond back at specified
intervals for specified prices- get the liability off the books
, ◉ coupon rate (stated rate- set in stone). Answer: premiums and
discounts are caused by the market interest rate being different
from the:
◉ stockholder control unaffected, tax savings. Answer: 2 advantages
of issuing bonds instead of common stock
◉ stated rate. Answer: the contractual interest rate on a bond is
often referred to as the:
◉ time value of money. Answer: the principle that a dollar received
today is worth more than a dollar received in the future
◉ cr. Answer: normal balance of premium on bonds payable
◉ dr. Answer: normal balance of discount on bonds payable
◉ face value. Answer: the amount of principal due at the maturity
date
◉ maturity date. Answer: the date that the final payment is due to
the investor from the company
2026 STUDY GUIDE SOLVED QUESTIONS
◉ of the customers. Answer: sales taxes collected by a retailer from a
customer are expenses:
◉ payroll tax payable. Answer: companies are required to withhold
a variety of amounts for their employees from their paychecks which
they must then pay to other parties
◉ dr s and w payable cr cash. Answer: journal entry to record
payment of salaries and wages to employees
◉ salaries and wages expense. Answer: dr account in employee
portion of taxes
◉ payroll tax expense. Answer: dr account in employer portion of
taxes
◉ bonds. Answer: a form of interest-bearing notes payable issued by
corporations, universities, and governmental agencies
◉ bondholder. Answer: whoever buys the bond
,◉ issuer. Answer: the individual or business organization selling a
bond
◉ financing. Answer: what business activity are we engaging in
when issuing bonds?
◉ better chance of payoff & higher legal claim (in event of
bankruptcy). Answer: why would people buy bond instead of stock?
◉ secured bond. Answer: specific assets of the issuer pledged as
collateral- more frequent with small companies or companies with
poor credit
◉ unsecured bond. Answer: no collateral- frequently used by large
corporations with good credit ratings
◉ convertible bonds. Answer: bondholder can convert the bond into
shares of common stock- good for bondholder bc benefit if market
price increases, good for issuer bc higher price and lower interest
◉ callable bonds. Answer: issuer can buy the bond back at specified
intervals for specified prices- get the liability off the books
, ◉ coupon rate (stated rate- set in stone). Answer: premiums and
discounts are caused by the market interest rate being different
from the:
◉ stockholder control unaffected, tax savings. Answer: 2 advantages
of issuing bonds instead of common stock
◉ stated rate. Answer: the contractual interest rate on a bond is
often referred to as the:
◉ time value of money. Answer: the principle that a dollar received
today is worth more than a dollar received in the future
◉ cr. Answer: normal balance of premium on bonds payable
◉ dr. Answer: normal balance of discount on bonds payable
◉ face value. Answer: the amount of principal due at the maturity
date
◉ maturity date. Answer: the date that the final payment is due to
the investor from the company
