Jeopardy_1997-2003_Ver[1]

Jeopardy_1997-2003_Ver[1] - Name: _ Date: _ 1. The...

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Name: __________________________ Date: _____________ 1. The relationship between current liabilities and current assets is important in evaluating a company's ability to pay off its long-term debt. Choose: True or False 2. Unearned revenues should be classified as Other Revenues and Gains on the Income Statement. Choose: True or False 3. Current liabilities are expected to be paid within one year or the operating cycle, whichever is longer. Choose: True or False 4. Premium on Bonds Payable A. has a debit balance. B. is a contra account. C. is considered to be a reduction in the cost of borrowing. D. is deducted from bonds payable on the balance sheet. 5. If the market interest rate is greater than the contractual interest rate, bonds will sell A. at a premium. B. at face value. C. at a discount. D. only after the stated interest rate is increased. 6. The market interest rate is often called the A. stated rate.
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B. effective rate. C. coupon rate. D. contractual rate. 7. A current liability is a debt that can be expected to be paid within ______________ year or the ______________, whichever is longer. 8. Obligations in written form are called ______________ and usually require the borrower to pay interest. 9. If bonds were issued at a premium, then the contractual interest rate was _____________ than the market interest rate. 10. During the month, a company sells goods for a total of $108,000, which includes sales taxes of $8,000; therefore, the company should recognize $100,000 in Sales Revenues and $8,000 in Sales Tax Expense. Choose: True or False 11. Bonds are a form of interest-bearing notes payable. Choose: True or False 12. Which of the following is usually not an accrued liability? A. Interest payable B. Wages payable C. Taxes payable D. Notes payable 13. Unearned Rental Revenue is
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A. a contra account to Rental Revenue. B. a revenue account. C. reported as a current liability. D. debited when rent is received in advance. 14. A corporation is not an entity which is separate and distinct from its owners. Choose: True or False 15. If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the dividends received from that corporation. Choose: True or False 16. A corporation must be incorporated in each state in which it does business. Choose: True or False 17. A proxy is a legal document that instructs a stockholder's agent how to vote shares of stock for the stockholder. Choose: True or False 18. The par value of common stock must always be equal to its market value on the date the stock is issued. Choose: True or False 19. A 3 for 1 common stock split will increase total stockholders' equity but reduce the par or stated value per share of common stock. Choose: True or False
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This note was uploaded on 04/29/2011 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

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Jeopardy_1997-2003_Ver[1] - Name: _ Date: _ 1. The...

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