Question

Could you plz help me those questions? I literally struggled.. QUESTION 1 Which of the following is true regarding current portion of long-term debt? a. is reported separately on the balance sheet, but not in the general ledger b. is listed on the balance sheet as a current liability c. it is the part of the liability amount that is expected to be paid within the next year d. all are true 1 points    QUESTION 2 Where on the balance sheet would a bond discount be reported? a. under long-term liabilities, as an addition to the B/P b. under the investments section of assets, as a reduction to the B/P c. under long-term liabilities, with a reduction to the B/P d. under long-term assets, as an addition to the B/P 1 points    QUESTION 3 When a bondholder must send in a coupon to receive the interest payment, what kind of bond is it? a. term bond b. registered bond c. serial bond d. bearer bond 1 points    QUESTION 4 A company sells a $100,000 B/P at 97. How much cash does the company receive? a. $103,000 b. $100,000 c. $100,000 but only has to pay back $97,000 d. $97,000 1 points    QUESTION 5 A $500,000 N/P is issued at 12%. Monthly payments are $30,000. How much of the first payment is interest? a. $6,000 b. $25,000 c. $5,000 d. $30,000 1 points    QUESTION 6 Joshua Corporation has current assets $45,000, long-term assets $230,000, current liabilities $36,000, long-term liabilities $100,000, NI $22,000. What is the debt to equity ratio? a. 20.22% b. 49.45% c. 97.84% d. 50.55% 1 points    QUESTION 7 Bonds that mature on different dates are called a. bond debenture b. term bonds c. serial bonds d. bond indenture 1 points    QUESTION 8 Which type of bonds are issued based on the good credit rating of the issuing company? a. sinking fund bond b. serial bonds c. debendure bonds d. term bonds 1 points    QUESTION 9 Which ratio measures a company's ability to make interest payments? a. debt to equity b. times interest earned c. return on interest d. ROE 1 points    QUESTION 10 Which of the following is true regarding B/P? a. payment at maturity includes interest b. interest paid is tax deductible c. periodic payments include principle and interest d. dividends only have to be paid when declared by the board of directors 1 points    QUESTION 11 Karson Corporation issued a $200,000, 10 year B/P at a discount. What would this indicate? a. face interest rate > market interest rate b. contractual interest rate < stated interest rate c. contractual interest rate > stated interest rate d. face interest rate < market interest rate 1 points    QUESTION 12 A company issues a 6 year, $400,000 B/P with face interest rate = 9% when the market interest rate = 10%. How much would the B/P sell for in the market? a. $382,577 b. $372,745 c. $382,275 d. $389,850 1 points    QUESTION 13 The carrying value of a B/P sold at a premium is a. face value + unamortized premium b. face value - amortized premium c. face value + amortized premium d.

Answer 1

1) C- is the part of the liability amount that is expected to be paid within the next year

2) C -under long-term liabilities, with a reduction to the B/P

3) D - bearer bond

4) D- $ 97000

5) C -. $5000

6) C- 97.84%

7) D- serial bonds

8) D- term bonds

9) C - Return on interest

10) D- dividends only have to be paid when declared by the board of directors

11) D- face interest rate < market interest rate

12) D- $389,850

13) A- face value + unamortized premium