Homework Answers
Question 1
Correct answer------------The market rate of interest refers to the rate that the company promises to pay the bondholders.
.
Market rate and stated rate differences changes the selling price of bond. If market rate and stated rate are equal then bond is sold at Par.
Question 2
Correct answer------------Will reduce retained earnings similar to a cash dividend.
Stock dividend do not change the overall stockholder's equity but it changes the the accounts balances in stockholder's equity such as decrease in retained earnings and increase in common stock and other paid in capital account.
Question 3
Correct answer------------Debits dividends and credits dividends payable for the amount of the dividend.
.
When dividend is declared it is not known that to whom the dividend will be paid. Dividend is paid at a later date and the holder of share received the dividend.
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Which of the following statements is correct? Multiple Choice There are almost always small differences between...
On the date of record for a dividend, the company: Multiple Choice debits Dividends and credits...
On the date of record for a dividend, the company: Multiple Choice debits Dividends and credits Dividends Payable for the amount of the dividend. debits Dividend Expense and credits Cash for the dividend amount debits Dividends Payable and credits Cash for the dividend amount establishes who will receive the dividend payment
please answer the following multiple choice Which of the following is the amount the borrower must...
please answer the following multiple choice
Which of the following is the amount the borrower must pay back to the bondholders? 7 A) Market value B) Present value C) Stated interest value D) Principal amount 8. Which of the following describes the term maturity date? A) The date on which each interest payment is made B) The date on which the bond is issued C) The date on which the principal amount is repaid to the bondholder D) The date...
MULTIPLE CHOICE QUESTIONS 1. The legal contract between the issuing corporation and the bondholders is called...
MULTIPLE CHOICE QUESTIONS 1. The legal contract between the issuing corporation and the bondholders is called the bond indenture A) True B) False 2.One of the similarities of bond and equity financing is that both dividends and equity distribution payments are tax deductible. C) True D) False 3. Interest on bonds is tax deductible. E) True >F) False 2. The relationship between the market rate of a bond and the rate of return on the borrowed funds affects the company's...
Which of the following statements concerning stock dividends is correct? Multiple Choice The declaration of a...
Which of the following statements concerning stock dividends is correct? Multiple Choice The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued. O The issuance of a stock dividend increases total stockholders' equity. Oo oo Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors, therefore, a stock dividend declared, but not yet issued is o liability Astock dividend cannot use treasury stock
The issuer of a 5% common stock dividend (small stock dividend) to common stockholders should debit...
The issuer of a 5% common stock dividend (small stock dividend) to common stockholders should debit stock dividends for an amount equal to the Multiple Choice Book value of the shares issued O Par or stated value of the shares issued Market value of the shares issued. Minimum legal requirements < Prev 30 of 30 !!! On June 1, the board of directors declares a cash dividend to be paid on June 30 to stockholders of record on June 15....
e carrying value of bonds at maturity always equals. Multiple Choice O the amount in excess...
e carrying value of bonds at maturity always equals. Multiple Choice O the amount in excess of par value. O the amount of cash originally received in exchange for the bonds. O the amount of discount or premium O the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. O the par value of the bond. < Prev 1 of 2 Next > Multiple Choice o The contract rate is above...
Which of the following statements pertaining to preferred stock is not correct? Multiple Choice Preferred stock...
Which of the following statements pertaining to preferred stock is not correct? Multiple Choice Preferred stock may have an adjustable rate which pays a dividend that is adjusted, usually on a quarterly basis O Preferred stock dividends are contractual obligations that must be paid in potable years. Most preferred stock issues are nonparticipating, meaning that the shareholders are ented to receive only dividends based on the stated vidend rate. Preferred shareholders are given pretorence with respect to both duidend distributions...
^answes for question ^multiple choice for that question Which of the following statements regarding debits and...
^answes for question
^multiple choice for that question
Which of the following statements regarding debits and credits is always correct? Multiple Choice The total value of all debits to a particular account must equal the total value of all credits to that account. O The total value of all debits recorded in the ledger must equal the total value of all credits recorded in the ledger. Debits decrease accounts while credits increase them. The normal balance for an account is...
These are all multiple choice questions. I need your help, and I need them for tonight....
These are all multiple choice questions. I need your help, and
I need them for tonight. Please... Thank you ?
We were unable to transcribe this imageMultiple Choice Question 136 When admitting a new partner by investment, a bonus to old partners is sometimes justified because goodwill may exist and it is not reflected in the accounts. is usually unjustified because book values clearly reflect partnership net worth. results if the debit to cash is equal to the new partner's...
Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A....
Which of the following best describes the relationship between revenue and retained earnings? Multiple Choice A. Revenue represents a cash receipt; retained earnings is an element of stockholders' equity. B. Retained earnings is equal to assets minus expenses. C. Revenue represents the price of goods sold or services rendered; retained earnings represents cash available for paying dividends. D. Revenue increases net income, which in turn increases retained earnings. Which of the following is not a right of stockholders? Multiple Choice...
On the date of record for a dividend, the company: Multiple Choice debits Dividends and credits Dividends Payable for the amount of the dividend. debits Dividend Expense and credits Cash for the dividend amount debits Dividends Payable and credits Cash for the dividend amount establishes who will receive the dividend payment
please answer the following multiple choice
Which of the following is the amount the borrower must pay back to the bondholders? 7 A) Market value B) Present value C) Stated interest value D) Principal amount 8. Which of the following describes the term maturity date? A) The date on which each interest payment is made B) The date on which the bond is issued C) The date on which the principal amount is repaid to the bondholder D) The date...
MULTIPLE CHOICE QUESTIONS 1. The legal contract between the issuing corporation and the bondholders is called the bond indenture A) True B) False 2.One of the similarities of bond and equity financing is that both dividends and equity distribution payments are tax deductible. C) True D) False 3. Interest on bonds is tax deductible. E) True >F) False 2. The relationship between the market rate of a bond and the rate of return on the borrowed funds affects the company's...
Which of the following statements concerning stock dividends is correct? Multiple Choice The declaration of a stock dividend should not be recorded as a liability even though it has not yet been issued. O The issuance of a stock dividend increases total stockholders' equity. Oo oo Courts generally have held that stock dividends, once declared, are irrevocable by the board of directors, therefore, a stock dividend declared, but not yet issued is o liability Astock dividend cannot use treasury stock
The issuer of a 5% common stock dividend (small stock dividend) to common stockholders should debit stock dividends for an amount equal to the Multiple Choice Book value of the shares issued O Par or stated value of the shares issued Market value of the shares issued. Minimum legal requirements < Prev 30 of 30 !!! On June 1, the board of directors declares a cash dividend to be paid on June 30 to stockholders of record on June 15....
e carrying value of bonds at maturity always equals. Multiple Choice O the amount in excess of par value. O the amount of cash originally received in exchange for the bonds. O the amount of discount or premium O the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. O the par value of the bond. < Prev 1 of 2 Next > Multiple Choice o The contract rate is above...
Which of the following statements pertaining to preferred stock is not correct? Multiple Choice Preferred stock may have an adjustable rate which pays a dividend that is adjusted, usually on a quarterly basis O Preferred stock dividends are contractual obligations that must be paid in potable years. Most preferred stock issues are nonparticipating, meaning that the shareholders are ented to receive only dividends based on the stated vidend rate. Preferred shareholders are given pretorence with respect to both duidend distributions...
^answes for question
^multiple choice for that question
Which of the following statements regarding debits and credits is always correct? Multiple Choice The total value of all debits to a particular account must equal the total value of all credits to that account. O The total value of all debits recorded in the ledger must equal the total value of all credits recorded in the ledger. Debits decrease accounts while credits increase them. The normal balance for an account is...
These are all multiple choice questions. I need your help, and
I need them for tonight. Please... Thank you ?
We were unable to transcribe this imageMultiple Choice Question 136 When admitting a new partner by investment, a bonus to old partners is sometimes justified because goodwill may exist and it is not reflected in the accounts. is usually unjustified because book values clearly reflect partnership net worth. results if the debit to cash is equal to the new partner's...
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