Workshop 2 - Exam 1

Workshop 2 - Exam 1 - Grade Delivery Points Awarded Points...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Points Awarded 91.00 Points Missed 9.00 Percentage 91.0% 1. A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called A) a bond indenture. B) a bond debenture. C) trading on the equity. D) a term bond. Points Earned: 2.0/2.0 Correct Answer(s): A 2. Secured bonds are bonds that A) are in the possession of a bank. B) are registered in the name of the owner. C) have specific assets of the issuer pledged as collateral. D) have detachable interest coupons. Points Earned: 2.0/2.0 Correct Answer(s): C 3. Bonds that may be exchanged for common stock at the option of the bondholders are called A) options. B) stock bonds. C) convertible bonds. D) callable bonds. Points Earned: 2.0/2.0 Correct Answer(s): C 4. The contractual interest rate is always stated as a(n) A) monthly rate. B) daily rate. C) semiannual rate. D) annual rate. Points Earned: 2.0/2.0 Correct Answer(s): D Page 1 of 12 Grade Delivery 11/29/2009 https://lms.bvu.edu/Section/Assessment/Question/GradeDelivery.aspx?entryId=724ad589. ..
Background image of page 1

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

View Full DocumentRight Arrow Icon
5. A $1,000 face value bond with a quoted price of 98 is selling for A) $1,000. B) $980. C) $908. D) $98. Points Earned: 2.0/2.0 Correct Answer(s): B 6. 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. Points Earned: 2.0/2.0 Correct Answer(s): C 7. Gomez Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2008, at 98. The journal entry to record the issuance will show a A) debit to Cash of $1,000,000. B) credit to Discount on Bonds Payable for $20,000. C) credit to Bonds Payable for $980,000. D) debit to Cash for $980,000. Points Earned: 2.0/2.0 Correct Answer(s): D 8. Lahey Corporation retires its $500,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $518,725. The entry to record the redemption will include a A) credit of $18,725 to Loss on Bond Redemption. B) debit of $18,725 to Premium on Bonds Payable. C) credit of $6,275 to Gain on Bond Redemption. D) debit of $25,000 to Premium on Bonds Payable. Points Earned: 2.0/2.0 Correct Answer(s): B 9. The entry to record an installment payment on a long-term note payable is Page 2 of 12 Grade Delivery 11/29/2009 https://lms.bvu.edu/Section/Assessment/Question/GradeDelivery.aspx?entryId=724ad589. ..
Background image of page 2
A) a B) b C) c D) d Points Earned: 2.0/2.0 Correct Answer(s): C 10. Which of the following is not a condition which would require the recording of a lease contract as a capital lease? A) The lease transfers ownership of the property to the lessee. B) The lease contains a bargain purchase option.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/24/2011 for the course MGMT 201 taught by Professor Parkin during the Fall '10 term at Buena Vista.

Page1 / 12

Workshop 2 - Exam 1 - Grade Delivery Points Awarded Points...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online