Question 1

Current liabilities could include all of the following except:

Accepted Answer

A)  accounts payable.
B)  notes payable.
C)  current operating expenses.
D)  Accrued payroll.E) C) and D)
F) A) and C)

Question 2

Where a bond is sold at a discount,interest expense recorded using the effective interest method is less than the interest paid on that bond.

Accepted Answer

A) True 
 B)False

Question 3

A company has current assets of $5 million and long term assets of $10 million.Current liabilities total $2.5 million,and long term liabilities total $5.5 million.What is the Debt-to Assets ratio for the company?

Accepted Answer

A)  2
B)  .625
C)  0.5
D)  .53 E) A) and B)
F) A) and C)

Question 4

Using straight-line amortization,when a bond is sold at a discount:

Accepted Answer

A)  bonds payable declines by a constant amount each year.
B)  interest expense declines by a constant amount each year.
C)  bonds payable net of discount declines by a constant amount each year.
D)  interest expense is a constant amount each year.E) All of the above
F) None of the above

Question 5

Straight line method of amortization for Bonds is accepted under IFRS.

Accepted Answer

A) True 
 B)False

Question 6

The face value of a bond is what it is currently worth in the market.

Accepted Answer

A) True 
 B)False

Exam 10: Liabilities

The face value of a bond is what it is currently worth in the market.

Correct Answer
verified

Straight line method of amortization for Bonds is accepted under IFRS.

Correct Answer
verified

Current liabilities could include all of the following except:

Correct Answer
verified

Where a bond is sold at a discount,interest expense recorded using the effective interest method is less than the interest paid on that bond.

Correct Answer
verified

Using straight-line amortization,when a bond is sold at a discount:

Correct Answer
verified

A company has current assets of $5 million and long term assets of $10 million.Current liabilities total $2.5 million,and long term liabilities total $5.5 million.What is the Debt-to Assets ratio for the company?

Correct Answer
verified

Exam 10: Liabilities

The face value of a bond is what it is currently worth in the market.

Correct AnswerverifiedShow Answer

Straight line method of amortization for Bonds is accepted under IFRS.

Correct AnswerverifiedShow Answer

Current liabilities could include all of the following except:

Correct AnswerverifiedShow Answer

Where a bond is sold at a discount,interest expense recorded using the effective interest method is less than the interest paid on that bond.

Correct AnswerverifiedShow Answer

Using straight-line amortization,when a bond is sold at a discount:

Correct AnswerverifiedShow Answer

A company has current assets of $5 million and long term assets of $10 million.Current liabilities total $2.5 million,and long term liabilities total $5.5 million.What is the Debt-to Assets ratio for the company?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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