ACCT207 Chapter 10 Practice Questions

A ffi fatse tuofreesy 4 the matching principle

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a. ;,.;; "",,-"."|=ffi fatse _Tuo"fr+e*esy \/,.. 4. The matching principle requires that retiren/e\rt benefit expenses be recorded in the year the employees receive the retirenTffihecks. l fr:rr"r ,y * v e:. ,rr-vi"r:i,x-a( 4',',x.. d-, .,f.'l a. true (, fatse -J ]1,.1,: ti t.*- ,r /J , {q:i;,+b,a fr(i.Ffl s." ln the recognition of revenues and expenses, difference, 0".#.#?i.'.;ilr;.,jit'lffiments and Pcov*,ru li *z* o 1r*, 10,,-,t: Which a. b, c. d. (e. I 7. *u..;u e *e"I4#il3 tlup { s*{{ritf.r:r} *;ircj !'t,i f{ ', rl,r. d. =o--*.-*.*--.-,. - t- tli :. , 'u;.r{.,... d--l Arf*v rr A fl:n.,#: (frPP P) -la
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8' Goodman company borrowed S1oo,o0o cash on September 'J.,2oog, and signed a one-year 1.2%o interest-bearing note payable. The required adjusting entry at the end of the accounting period, Decemlgl3 1,, 2009, would be: ( ,. ) lnterest expense 4,OOO L-/ lnterest payable 4,OOA b. Interest expense 12,000 p X fA x 1- lnterest payable LZ,OOO r r'a tL c. Notes payable 100,000 , i.,r !ir.h r .t? X + lnterest expense 12,000 itv') :'::1' x " \/- " - {-?- Cash 1,12,000 d. lnterest payable 4,OOO lnterest expense 4,OOO 10' A bondholder participates in the company's management and is entitled to a portion of its accumulated earnings. a. true O rarse 11. lf a company issues a bond at a price of 104, then the stated rate of interest must be less than the markeli^qterest rate. a. true ( u) false \-/ 12. 13. The issuance and retirement of bonds have cash frows. ,A. rsignificant impact ""@ **-;*8 a. true \!, fatse Which of the following statements best describes the behavior over time of the co m p o n e nts of egg,a ]gggtenggpta ym e nts ?
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