accounting final multiply questions

34 terms by alanbqle

Create a new folder

Like this study set?

Create a free Quizlet account to save it and study later.

Sign up for an account

Already have a Quizlet account? .

Create an account

Advertisement Upgrade to remove ads

promissory notes that require the issuer to make a series of payments consisting of both interest and principal

Installments notes

if an issuer sells a bond at a date other than an interest payment date

the buyers normally pay the issuer the purchase price plus any interest accrued since the prior interest payment date

which of the following statements is true

interest on bonds is tax deductible

a bondholder that owns a $1000, 10%, 10-year bond has

the right to receive 1000 at maturity

bonds that have an option exercisable by the issuer to retire them at stated dollar amount prior to maturity are known as

callable bonds

a bond traded at 102 1/2 means that

the bond traded at $1025 per $1000 bond

when bond sells at a premium

the stated (or coupon) rate is above the market rate

a bond sells at a discount when the

the stated (or coupon) rate is below the market rate

amortizing a bond discount

allocates a part of the total discount to each interest period

the discount on bonds payable account is

a contra liability

a discount on bands payable

occurs when a company issues bonds with a stated (coupon) rate less than the market rate

preemptive right

the right of common shareholders to protect their proportionate interest in a corporation by having the first opportunity to buy additional proportionate shares of common stock issued by the corporation is called a

the total amount of stock that a corporation's charter allows it to issue is referred to as

authorized stock

par value of a stock refers to the

value assigned to a share of stock by the corporate charter

stockholders' equity consists of

contributed capital and retained earnings

owners of preferred stock often do not have

voting rights

a company issues 7%preferred stock with $100 par value. its current market price is $150. this means that

the amount of the dividend is $7 per year per preferred share

retained earnings

generally consists of a company's cumulative net income less any net losses and dividends declared since its inception

the amount of income earned per share of a company's common stock is known as

earnings per share

the annual amount of cash dividends distributed to common shareholders relative to the common stock's market value is the

dividend yield

book value per share

reflects the value per share if a compnay is luquidated at balance sheet amounts

a corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called

stock dividend

the ability to meet short term obligations and to efficiently generate revenues is called

liquidity and efficiency

industry standards for financial statement analysis

are set by the financial performance and condition of the company's industry

the comparison of a company's financial condition's and performance across time is known as

horizontal analysis

the measurement of key relations among financial statement items is known as

ratio analysis

the comparison of a company's financial condition and performance to a base amount is known as

vertical analysis

comparative financial statements in which each amount is expressed as a percentage of a base amount are called

common-size comparative statements

currents assets divided by current liabilities is the

current ratio

quick assets divided by current liabilities is the

acid-test ratio

net sales divided by average accounts receivable is the

accounts receivable turnover ratio

dividing accounts receivable by net sales and multiplying the result by 365 is the

days' sale uncollected

dividing ending inventory by cost of goods sold and multiplying the results by 365

days' sales in inventory

net sales divided by average total assets is the

total asset turnover

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again


Reload the page to try again!


Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set