Term
Cash dividends become a liability of the company |
|
Definition
On the date of declaration |
|
|
Term
A market adjustment for trading security would |
|
Definition
Be a gain or loss in the income statement |
|
|
Term
If bonds are issued at a premium and the effective interest method is used for amortizing the premium, the interest expense for succeeding six month periods will be |
|
Definition
|
|
Term
If shares of common stock are held as treasury shares, accounted for using the par value method, the entry to record the retirement of these shares would include |
|
Definition
A credit to Treasury Stock for the par value of the shares retired |
|
|
Term
Under what condition would Drake company use the equity method to account for its investment |
|
Definition
Purchase of 35% of Lowes common stock |
|
|
Term
The journal entry to record an interest payment for bonds issued at a discount would include |
|
Definition
A credit to Discount on Bonds Payable |
|
|
Term
|
Definition
Change the par value per share but not the total par value of stock outstanding |
|
|
Term
If an available for sale security is sold, the seller would record |
|
Definition
A realized gain or loss for the difference between the selling price and the original cost |
|
|
Term
If the contract rate on a bond issue is 6% and the effective rate when the bonds are issued is |
|
Definition
An amount below par value |
|
|
Term
Cash dividends become a liability of the company |
|
Definition
On the date of declaration |
|
|
Term
A market adjustment for trading securities would |
|
Definition
Be a gain or loss in the income statement |
|
|
Term
How are the following accounts classified? |
|
Definition
Dividends Payables: Liability
Property Dividends Payable: Liability
Stock Dividends Distributable: Equity |
|
|
Term
Jake Company has an investment in Loverill Company stock and accounts for it using the equity method earns an income during the year, Jake would |
|
Definition
Credit Income from Investment in Loverill stock |
|
|
Term
If bonds are issued at a discount, the amount of discount amortized will be |
|
Definition
More for the second interest payment than the first if the effective interest method is used |
|
|
Term
The cash interest paid on bonds equals the |
|
Definition
Face value multiplied by the stated rate |
|
|
Term
If the convert. at preferred stock is converted to common stock and the total par value of the company's original amount received for the preferred stock converted, the journal entry to record the company |
|
Definition
A credit to Paid in Capital in Excess of Par-Common Stock |
|
|
Term
Mikel Company issued bonds in the primary bond market; Port Company purchased some, purchased some of these bonds from Port in the secondary market between interest payment bonds until they mature. Stone will debit the Investment in Held to Maturity Securities- |
|
Definition
The present value of the future cash receipts, net of accrued interest |
|
|
Term
Zero-interest bonds would sell at |
|
Definition
|
|
Term
Minimum lease payments could include any of the following except |
|
Definition
|
|
Term
Net operating losses (NOLs) |
|
Definition
Can be carried back 2 years and then forward up to 20 years until used |
|
|
Term
In calculating diluted earnings per share, stock options are considered using |
|
Definition
The treasury stock method |
|
|
Term
The implicit rate in a lease is the rate |
|
Definition
The lessor has built into the required lease payments |
|
|
Term
Which of the following items would lead to a deferred tax liability |
|
Definition
|
|
Term
In calculating diluted earnings per share, dilutive convertible bonds are |
|
Definition
Adding the after tax interest to the numerator |
|
|
Term
If an asset is returned to the lessor at the end of the lease term |
|
Definition
The lessee would pay the lessor if the asset is worth less than its guaranteed |
|
|
Term
If the company uses accelerated tax depreciation and straight line book depreciation the |
|
Definition
Noncurrent deferred tax liability |
|
|
Term
If a lease is cancelled it would be |
|
Definition
|
|
Term
In calculating basic earnings per share, preferred dividends are subtracted in the number which one |
|
Definition
The preferred stock is noncumulative and no dividends were declared |
|
|
Term
A midyear stock split would |
|
Definition
Adjust the weighted average number of shares of common stock outstanding |
|
|
Term
The useful life used to amortize an asset under a capital lease would |
|
Definition
Be the life of the lease if the life of the lease is at 75% of the life |
|
|
Term
Interest received from an investment in municipal bonds would be |
|
Definition
|
|
Term
Diluted earnings per share is a number calculated by considering |
|
Definition
Changes in the number of shares of common stock hypothetically outstanding are actually dilutive |
|
|