ACC 201 Final Exam Study Guide - Hickle
– BSU Questions With Correct Answers
Which of the following statements is true? - CORRECT ANSWER✔✔-A. interest on
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bonds is tax deductible
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The discount on bonds payable account is - CORRECT ANSWER✔✔-B. a contra
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liability
Sinking fund bonds: - CORRECT ANSWER✔✔-A. require the issuer to set aside
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assets to retire the bonds at maturity
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An advantage of bond financing is: - CORRECT ANSWER✔✔-E. All of the Above
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- bonds do not affect owners' control
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-interest on bonds is tax deductible | | | | | |
- bonds can increase return on equity
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-it allows firms to trade on the equity
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A discount on bonds payable - CORRECT ANSWER✔✔-A. occurs when a company
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issues bonds with a contract rate less than the market rate
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A company purchased equipment and signed a 7-year installment loan at 9%
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annual interest. The annual payments equal $9,000. The present value for an
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, annuity for 7 years at 9% is 5.0330. The present value of the loan is: - CORRECT
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ANSWER✔✔-E. $45,297 |
9,000 x 5.0330 = $45,297
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Promissory notes that require the issuer to make a series of payments consisting
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of both interest and principal are - CORRECT ANSWER✔✔-C. installment notes
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the effective interest amortization method - CORRECT ANSWER✔✔-B. allocates
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bond interest expense using a constant interest rate
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A company's board of director's votes to declare a cash dividend of $0.75 per
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share. The company has 15,000 shares authorized, 10,000 issued and 9,500
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shares outstanding. The total amount of the cash dividend is - CORRECT
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ANSWER✔✔-C. $7,125 |
$0.75 x 9,500 shares = $7,125
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Stock options are often used to encourage employees to - CORRECT ANSWER✔✔-
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E. All of the above
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- focus on company performance
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- take a long-run approach
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-remain with the company | | |
- to help save for retirement by participation in profit-sharing plans
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– BSU Questions With Correct Answers
Which of the following statements is true? - CORRECT ANSWER✔✔-A. interest on
| | | | | | | | | | |
bonds is tax deductible
| | | |
The discount on bonds payable account is - CORRECT ANSWER✔✔-B. a contra
| | | | | | | | | | | |
liability
Sinking fund bonds: - CORRECT ANSWER✔✔-A. require the issuer to set aside
| | | | | | | | | | | |
assets to retire the bonds at maturity
| | | | | |
An advantage of bond financing is: - CORRECT ANSWER✔✔-E. All of the Above
| | | | | | | | | | | | |
- bonds do not affect owners' control
| | | | | | |
-interest on bonds is tax deductible | | | | | |
- bonds can increase return on equity
| | | | | |
-it allows firms to trade on the equity
| | | | | | |
A discount on bonds payable - CORRECT ANSWER✔✔-A. occurs when a company
| | | | | | | | | | | |
issues bonds with a contract rate less than the market rate
| | | | | | | | | |
A company purchased equipment and signed a 7-year installment loan at 9%
| | | | | | | | | | | |
annual interest. The annual payments equal $9,000. The present value for an
| | | | | | | | | | | |
, annuity for 7 years at 9% is 5.0330. The present value of the loan is: - CORRECT
| | | | | | | | | | | | | | | | |
ANSWER✔✔-E. $45,297 |
9,000 x 5.0330 = $45,297
| | | |
Promissory notes that require the issuer to make a series of payments consisting
| | | | | | | | | | | | |
of both interest and principal are - CORRECT ANSWER✔✔-C. installment notes
| | | | | | | | | |
the effective interest amortization method - CORRECT ANSWER✔✔-B. allocates
| | | | | | | | |
bond interest expense using a constant interest rate
| | | | | | |
A company's board of director's votes to declare a cash dividend of $0.75 per
| | | | | | | | | | | | | |
share. The company has 15,000 shares authorized, 10,000 issued and 9,500
| | | | | | | | | | |
shares outstanding. The total amount of the cash dividend is - CORRECT
| | | | | | | | | | | |
ANSWER✔✔-C. $7,125 |
$0.75 x 9,500 shares = $7,125
| | | | |
Stock options are often used to encourage employees to - CORRECT ANSWER✔✔-
| | | | | | | | | | |
E. All of the above
| | | | |
- focus on company performance
| | | | |
- take a long-run approach
| | | | |
-remain with the company | | |
- to help save for retirement by participation in profit-sharing plans
| | | | | | | | | |
