ACC 131 Exam 4 ISU Questions and
Answers A+ Graded (2025)
bond .holders .do .not .have .- .CORRECT .ANSWER-voting .rights
individual .bond .x .face .value .= .- .CORRECT .ANSWER-bond .issue .amount
market .for .bonds .- .CORRECT .ANSWER-public .securities .markets
interest .on .bonds .is .- .CORRECT .ANSWER-tax .deductible
dividents .paid .to .shareholders .is .- .CORRECT .ANSWER-not .tax .deductible
borrowed .amounts .must .be .paid .at .- .CORRECT .ANSWER-maturity
entitles .bond .holders .to .claims .on .company .assets .and .serves .as
.protection/collateral .- .CORRECT .ANSWER-secured .bonds
collateral .to .secure .is .your .reputation .- .CORRECT .ANSWER-unsecured .bonds
bonds .that .mature .over .several .dates .and .smaller .amounts .- .CORRECT
.ANSWER-serial .bonds
bonds .that .mature .on .a .single .date .- .CORRECT .ANSWER-term .bonds
lender .advantage .that .gives .the .option .to .convert .the .bonds .into .other .securities
.such .as .common .stock .- .CORRECT .ANSWER-convertibility .feature
borrow .advantage .that .allows .you .to .repay .bonds .early .- .CORRECT .ANSWER-
call .feature/price
perform .a .contract .with .a .bond .holder .- .CORRECT .ANSWER-bond .indenture
bond .prices .are .expressed/quoted .as .a .- .CORRECT .ANSWER-percentage .of
.face/par .value
represent .the .amount .of .money .received .from .each .bond .issuer .- .CORRECT
.ANSWER-price .of .bonds
, things .that .affect .interest .rates .- .CORRECT .ANSWER-monetary .policy,
.macroeconomics, .industry/company, .specific .factors, .risk
maximum .# .of .shares .that .can .be .issues .by .a .company .- .CORRECT .ANSWER-
authorized .stock
stock .that .was .issued/sold .to .share .holders .and .they .continue .to .own .it .-
.CORRECT .ANSWER-outstanding .stock
contributed .capital .stockholders .investments .- .CORRECT .ANSWER-common
.stock, .APIC, . SE
stock .originally .sold .to .shareholders .later .reacquired .by .corporation .that .is .still
.considered .issued, .but .no .longer .outstanding
stated/legal .capital .of .a .share .- .CORRECT .ANSWER-treasury .stock
stated/legal .capital .of .a .share .of .stock .and .establishes .minimum .amount .to
.acquire .the .stock, .board .of .directors .- .CORRECT .ANSWER-par .value
par .value .x .# .of .shares .issued .= .- .CORRECT .ANSWER-common .stock .amount
the .greatest .risk .of .loss, .but .greatest .chance .for .rewards .- .CORRECT .ANSWER-
common .stock
can .be .issued .with .or .without .a .par .value .- .CORRECT .ANSWER-preferred .stock
no .par .stock .is .legal .capital .of .issued .stock .defined .by .- .CORRECT .ANSWER-
state .law
What .three .things .increases .when .outstanding .shares .are .reduced? .- .CORRECT
.ANSWER-increases .earnings
increases .market .value .of .remaining .shares
increases .remaining .shareholders .proportionate .interest .in .the .company
three .options .for .treasury .stock .- .CORRECT .ANSWER-hold .indefinitely .
reissue
retire
no .dividends .and .voting .rights .until .- .CORRECT .ANSWER-reissued
cannot .recognize .gains .and .losses .in .transactions .with .- .CORRECT .ANSWER-
their .own .stock
gains .= .increase .in .SE
losses .= .decrease .in .SE
treasury .stock .is .recorded .as .a .______ .and .a ._______ .account .- .CORRECT
.ANSWER-normal .balance .debit, .contra .equity
reported .as .last .item .in .SE .section
subtraction
Answers A+ Graded (2025)
bond .holders .do .not .have .- .CORRECT .ANSWER-voting .rights
individual .bond .x .face .value .= .- .CORRECT .ANSWER-bond .issue .amount
market .for .bonds .- .CORRECT .ANSWER-public .securities .markets
interest .on .bonds .is .- .CORRECT .ANSWER-tax .deductible
dividents .paid .to .shareholders .is .- .CORRECT .ANSWER-not .tax .deductible
borrowed .amounts .must .be .paid .at .- .CORRECT .ANSWER-maturity
entitles .bond .holders .to .claims .on .company .assets .and .serves .as
.protection/collateral .- .CORRECT .ANSWER-secured .bonds
collateral .to .secure .is .your .reputation .- .CORRECT .ANSWER-unsecured .bonds
bonds .that .mature .over .several .dates .and .smaller .amounts .- .CORRECT
.ANSWER-serial .bonds
bonds .that .mature .on .a .single .date .- .CORRECT .ANSWER-term .bonds
lender .advantage .that .gives .the .option .to .convert .the .bonds .into .other .securities
.such .as .common .stock .- .CORRECT .ANSWER-convertibility .feature
borrow .advantage .that .allows .you .to .repay .bonds .early .- .CORRECT .ANSWER-
call .feature/price
perform .a .contract .with .a .bond .holder .- .CORRECT .ANSWER-bond .indenture
bond .prices .are .expressed/quoted .as .a .- .CORRECT .ANSWER-percentage .of
.face/par .value
represent .the .amount .of .money .received .from .each .bond .issuer .- .CORRECT
.ANSWER-price .of .bonds
, things .that .affect .interest .rates .- .CORRECT .ANSWER-monetary .policy,
.macroeconomics, .industry/company, .specific .factors, .risk
maximum .# .of .shares .that .can .be .issues .by .a .company .- .CORRECT .ANSWER-
authorized .stock
stock .that .was .issued/sold .to .share .holders .and .they .continue .to .own .it .-
.CORRECT .ANSWER-outstanding .stock
contributed .capital .stockholders .investments .- .CORRECT .ANSWER-common
.stock, .APIC, . SE
stock .originally .sold .to .shareholders .later .reacquired .by .corporation .that .is .still
.considered .issued, .but .no .longer .outstanding
stated/legal .capital .of .a .share .- .CORRECT .ANSWER-treasury .stock
stated/legal .capital .of .a .share .of .stock .and .establishes .minimum .amount .to
.acquire .the .stock, .board .of .directors .- .CORRECT .ANSWER-par .value
par .value .x .# .of .shares .issued .= .- .CORRECT .ANSWER-common .stock .amount
the .greatest .risk .of .loss, .but .greatest .chance .for .rewards .- .CORRECT .ANSWER-
common .stock
can .be .issued .with .or .without .a .par .value .- .CORRECT .ANSWER-preferred .stock
no .par .stock .is .legal .capital .of .issued .stock .defined .by .- .CORRECT .ANSWER-
state .law
What .three .things .increases .when .outstanding .shares .are .reduced? .- .CORRECT
.ANSWER-increases .earnings
increases .market .value .of .remaining .shares
increases .remaining .shareholders .proportionate .interest .in .the .company
three .options .for .treasury .stock .- .CORRECT .ANSWER-hold .indefinitely .
reissue
retire
no .dividends .and .voting .rights .until .- .CORRECT .ANSWER-reissued
cannot .recognize .gains .and .losses .in .transactions .with .- .CORRECT .ANSWER-
their .own .stock
gains .= .increase .in .SE
losses .= .decrease .in .SE
treasury .stock .is .recorded .as .a .______ .and .a ._______ .account .- .CORRECT
.ANSWER-normal .balance .debit, .contra .equity
reported .as .last .item .in .SE .section
subtraction
