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Home  arrow Chapter 15  arrow Multiple Choice Questions

Multiple Choice Questions



This activity contains 16 questions.

Question 1.
All of the following are true regarding bonds except __________.

 
End of Question 1


Question 2.
All of the following are true regarding the selling price of bonds except __________.

 
End of Question 2


Question 3.
Use the following information to answer this question. A $100,000, 7% bond is issued on January 1, 2007 at a price of 97. All of the following statements are true regarding this bond except __________.

 
End of Question 3


Question 4.
Use the following information to answer this question. A $100,000, 7% bond is issued on January 1, 2007, at a price of 97. The bond matures in 10 years. All of the following statements are true regarding this bond except __________.

 
End of Question 4


Question 5.

Use the following information to answer this question. A $100,000, 7% bond is issued on January 1, 2007, at a price of 97. The bond matures in 10 years. Interest is paid semi-annually on June 30 and December 31. Using straight-line amortization, all of the following statements are true regarding the first semi-annual interest payment except __________.
 
End of Question 5


Question 6.
All of the following statements are true regarding bonds issued at a discount except __________.

 
End of Question 6


Question 7.
Use the following information to answer this question. A $200,000, 8% bond is issued on January 1, 2007 at a price of 105. The bond matures in 10 years. All of the following statements are true regarding this bond except __________.

 
End of Question 7


Question 8.

Use the following information to answer this question. A $200,000, 8% bond is issued on January 1, 2007, at a price of 105. The bond matures in 10 years. Interest is paid semi-annually on June 30 and December 31. Using straight-line amortization, all of the following statements are true regarding the semi-annual payments of this bond except __________.
 
End of Question 8


Question 9.

Assume a $300,000, 10% bond is issued on January 1, 2008, for $340,000 when the market interest rate is 8%. The bond matures in 10 years. Interest is paid semi-annually on June 30 and December 31. Using the effective-interest method of amortization, all of the following statements are true regarding the semi-annual interest payments of this bond except __________.
 
End of Question 9


Question 10.
All of the following statements regarding bonds payable are true except __________.

 
End of Question 10


Question 11.
All of the following statements regarding lease agreements are true except __________.

 
End of Question 11


Question 12.
All of the following statements are true regarding financing with stocks and bonds except __________.

 
End of Question 12


Question 13.
Advantages of financing operations by issuing bonds include:

 
End of Question 13


Question 14.
A form of debt, that is long-term and noncancellable, and is often used to finance the acquisition of assets is known as:

 
End of Question 14


Question 15.
The journal entry for issuing a $1,000.00 bond sold at a $20,000 discount includes:

 
End of Question 15


Question 16.
The journal entry for issuing a $1,000.00 bond sold at a $20,000 premium includes:

 
End of Question 16





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