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ACC 556 Chapter 10 Quiz (100% Score)
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ACC 556 Chapter 10 Quiz (100% Score)

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Chapter 10 Quiz Question 1 A current liability must be paid out of current earnings. Question 2 Most notes are not interest bearing. Question 3 Unearned revenues are received before goods are delivered or services are rendered. Question 4 The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account. Question 5 Material gains or losses on bond redemption are reported as an extraordinary item on the income statement. Question 6 Liabilities are classified on the balance sheet as current or Question 7 With an interest-bearing note, the amount of assets received upon issuance of the note is generally Question 8 The interest charged on a $70,000 note payable, at the rate of 6%, on a 90-day note would be Question 9 On January 1, 2014, Keisler Company, a calendar-year company, issued $700,000 of notes payable, of which $175,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is Question 10 Norlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $29,400. If the sales tax rate is 5%, what amount must be remitted to the state for October's sales taxes? Question 11 Stockholders of a company may be reluctant to finance expansion through issuing more equity because Question 12 Which of the following is not an advantage of issuing bonds instead of common stock? Question 13 When authorizing bonds to be issued, the board of directors does not specify the Question 14 If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount Question 15 If bonds are issued at a discount, it means that the Question 16 In the balance sheet, the account Discount on Bonds Payable is Question 17 If bonds have been issued at a discount, then over the life of the bonds the Question 18 Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? Question 19 The relationship between current assets and current liabilities is Question 20 Match the items below by entering the appropriate code letter in the space provided.

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