Question

please , could you hepl me checking if these answers are right ? thanks

ne criticism not normally aimed at a balance sheet prepared using current accounting and reporting standards is [a] failure to reflect current value information. [b] the extensive use of separate classifications. [c]) an extensive use of estimates 10 failure to include items of financial value that cannot be recorded objectively. 6. Which of the following is not an acceptable major asset classification ſal Current assets [b] Long-term investments Il Property, plant, and equipment (d) Deferred charges 7. Preparing the statement of cash flows involves all of the following except determining the a) cash provided by operations. [b] cash provided by or used in investing and financing activities. fe change in cash during the period. [d] cash collections from customers during the period. 8. The cash debt coverage is computed by dividing net cash provided by operating activities by a]) average long-term liabilities. [b] average total liabilities (c) ending long-term liabilities. (d) ending total liabilities. CHAPTER 6 9. Which table would you use to determine what amount was deposited three years ago to provide $1,000 today? [a] Future value of 1 or present value of 1 [b] Future value of an annuity due of 1 (c) Future value of an ordinary annuity of 1 [d] Present value of an ordinary annuity of 1 10. Stech Co. is issuing $9 million 12% bonds in a private placement on July 1, 2017. Each $1,000 bond pays interest semi-annually on December 31 and June 30 of each year. The bonds mature in ten years. At the time of issuance, the market interest rate for similar types of bonds was 8%. What is the expected selling price of the bonds? (a) $11,446,288. [b] $13,500,000. (c) $11,415,597. (d) $11,507,486.

Answer 1

5) Correct

6) Correct

7) d) Cash collection from customers during the period.

As financing and Investing Activites are part of Cash flow statement.

8)b) Average Total liabilities .

Cash Debt Coverage ratio is net cash from operating activites divided by average total Liabilities .

9)b) future value of an annuity due of 1

10) Correct