Chapter 10 Quiz\t\t\t\t\t\t\t\t\tQuestion 1\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA current liability must be paid out of current earnings.\t\t\t\t\t\t\t\t\tQuestion 2 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tMost notes are not interest bearing.\t\t\t\t\t\t\t\t\tQuestion 3\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tUnearned revenues are received before goods are delivered or services are rendered.\t\t\t\t\t\t\t\t\tQuestion 4 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account.\t\t\t\t\t\t\t\t\tQuestion 5\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tMaterial gains or losses on bond redemption are reported as an extraordinary item on the income statement.\t\t\t\t\t\t\t\t\tQuestion 6\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tLiabilities are classified on the balance sheet as current or\t\t\t\t\t\t\t\t\tQuestion 7\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWith an interest-bearing note, the amount of assets received upon issuance of the note is generally\t\t\t\t\t\t\t\t\tQuestion 8\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe interest charged on a $70,000 note payable, at the rate of 6%, on a 90-day note would be\t\t\t\t\t\t\t\t\tQuestion 9\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tOn January 1, 2014, Keisler Company, a calendar-year company, issued $700,000 of notes payable, of which $175,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is\t\t\t\t\t\t\t\t\tQuestion 10\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tNorlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $29,400. If the sales tax rate is 5%, what amount must be remitted to the state for October’s sales taxes?\t\t\t\t\t\t\t\t\tQuestion 11\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tStockholders of a company may be reluctant to finance expansion through issuing more equity because\t\t\t\t\t\t\t\t\tQuestion 12\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhich of the following is not an advantage of issuing bonds instead of common stock?\t\t\t\t\t\t\t\t\tQuestion 13\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tWhen authorizing bonds to be issued, the board of directors does not specify the\t\t\t\t\t\t\t\t\tQuestion 14\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIf the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount\t\t\t\t\t\t\t\t\tQuestion 15\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIf bonds are issued at a discount, it means that the\t\t\t\t\t\t\t\t\tQuestion 16 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIn the balance sheet, the account Discount on Bonds Payable is\t\t\t\t\t\t\t\t\tQuestion 17\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIf bonds have been issued at a discount, then over the life of the bonds the\t\t\t\t\t\t\t\t\tQuestion 18 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tErvay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?\t\t\t\t\t\t\t\t\tQuestion 19\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe relationship between current assets and current liabilities is\t\t\t\t\t\t\t\t\tQuestion 20\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tMatch the items below by entering the appropriate code letter in the space provided.<\/p>\n","protected":false},"excerpt":{"rendered":"
Chapter 10 Quiz Question 1 \u00a0 A current liability must be paid out of current earnings. Question 2 \u00a0 Most notes are not interest bearing. Question 3 \u00a0 Unearned revenues are received before goods are delivered or services are rendered. Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200208","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200208","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200208"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200208\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200208"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}