Term
| Cash dividends become a liability of the company |
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Definition
| On the date of declaration |
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Term
| A market adjustment for trading security would |
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Definition
| Be a gain or loss in the income statement |
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Term
| If bonds are issued at a premium and the effective interest method is used for amortizing the premium, the interest expense for succeeding six month periods will be |
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Definition
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Term
| If shares of common stock are held as treasury shares, accounted for using the par value method, the entry to record the retirement of these shares would include |
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Definition
| A credit to Treasury Stock for the par value of the shares retired |
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Term
| Under what condition would Drake company use the equity method to account for its investment |
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Definition
| Purchase of 35% of Lowes common stock |
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Term
| The journal entry to record an interest payment for bonds issued at a discount would include |
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Definition
| A credit to Discount on Bonds Payable |
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Term
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Definition
| Change the par value per share but not the total par value of stock outstanding |
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Term
| If an available for sale security is sold, the seller would record |
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Definition
| A realized gain or loss for the difference between the selling price and the original cost |
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Term
| If the contract rate on a bond issue is 6% and the effective rate when the bonds are issued is |
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Definition
| An amount below par value |
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Term
| Cash dividends become a liability of the company |
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Definition
| On the date of declaration |
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Term
| A market adjustment for trading securities would |
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Definition
| Be a gain or loss in the income statement |
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Term
| How are the following accounts classified? |
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Definition
Dividends Payables:
Liability
Property Dividends Payable:
Liability
Stock Dividends Distributable:
Equity |
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Term
| Jake Company has an investment in Loverill Company stock and accounts for it using the equity method earns an income during the year, Jake would |
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Definition
| Credit Income from Investment in Loverill stock |
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Term
| If bonds are issued at a discount, the amount of discount amortized will be |
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Definition
| More for the second interest payment than the first if the effective interest method is used |
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Term
| The cash interest paid on bonds equals the |
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Definition
| Face value multiplied by the stated rate |
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Term
| If the convert. at preferred stock is converted to common stock and the total par value of the company's original amount received for the preferred stock converted, the journal entry to record the company |
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Definition
| A credit to Paid in Capital in Excess of Par-Common Stock |
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Term
| Mikel Company issued bonds in the primary bond market; Port Company purchased some, purchased some of these bonds from Port in the secondary market between interest payment bonds until they mature. Stone will debit the Investment in Held to Maturity Securities- |
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Definition
| The present value of the future cash receipts, net of accrued interest |
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Term
| Zero-interest bonds would sell at |
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Definition
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Term
| Minimum lease payments could include any of the following except |
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Definition
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Term
| Net operating losses (NOLs) |
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Definition
| Can be carried back 2 years and then forward up to 20 years until used |
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Term
| In calculating diluted earnings per share, stock options are considered using |
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Definition
| The treasury stock method |
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Term
| The implicit rate in a lease is the rate |
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Definition
| The lessor has built into the required lease payments |
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Term
| Which of the following items would lead to a deferred tax liability |
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Definition
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Term
| In calculating diluted earnings per share, dilutive convertible bonds are |
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Definition
| Adding the after tax interest to the numerator |
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Term
| If an asset is returned to the lessor at the end of the lease term |
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Definition
| The lessee would pay the lessor if the asset is worth less than its guaranteed |
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Term
| If the company uses accelerated tax depreciation and straight line book depreciation the |
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Definition
| Noncurrent deferred tax liability |
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Term
| If a lease is cancelled it would be |
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Definition
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Term
| In calculating basic earnings per share, preferred dividends are subtracted in the number which one |
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Definition
| The preferred stock is noncumulative and no dividends were declared |
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Term
| A midyear stock split would |
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Definition
| Adjust the weighted average number of shares of common stock outstanding |
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Term
| The useful life used to amortize an asset under a capital lease would |
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Definition
| Be the life of the lease if the life of the lease is at 75% of the life |
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Term
| Interest received from an investment in municipal bonds would be |
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Definition
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Term
| Diluted earnings per share is a number calculated by considering |
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Definition
| Changes in the number of shares of common stock hypothetically outstanding are actually dilutive |
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