Accounting Final Exam Review

Accounting Final Exam Review - Final Exam – 60 multiple...

This preview shows pages 1–2. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Final Exam – 60 multiple choice questions Chapter 10 - 2 Questions on Theory • If bonds issued are greater than market rate, then there is a premium at more maturity • If bonds issued are lower than market rate, then there is a discount at less maturity • Par value – no discount or premium, it is issued at market rate • Principle or maturity value is the amount the borrower must pay back to the bondholder • Term bonds – mature same date Serial bonds – mature in installments Secured – if interest is not paid, bondholder has right to assets Debenture - unsecured, not backed by assets Convertible bonds – bonds that may be converted into common stock • Bonds – must pay interest, reduces net income, can increase earnings per share • Stock – don’t have to pay off, doesn’t affect net income, increases number of outstanding shares Chapter 11 - 5 Questions on Theory and calculations • Paid in Capital – amounts received from stockholders, common stock is main source • Retained Earnings – internal generated from profitable operations • Common – basic form of stock Preferred Stock – receive dividends and assets before CS, no right to vote • Preferred Stock par value per share = preferred stock ÷ # of shares issued • Preferred Stock dividend = preferred stock shares x par value X dividend rate • Common Stock dividend = total dividend (PS issued) – preferred stock dividend • Paid in Capital = (shares x price per share) – shares • Total Paid in Capital = PS + CS + Additional Paid in Capital • Common Equity = Total Stockholder’s equity – Preferred Equity • Preferred equity = Par value of stock + preferred dividends • Book value per share = Common equity ÷ common shares outstanding...
View Full Document

This note was uploaded on 12/05/2010 for the course BUS BUS taught by Professor Fox during the Fall '10 term at University of Baltimore.

Page1 / 4

Accounting Final Exam Review - Final Exam – 60 multiple...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online