ACC291 Week 3 Practice Quiz
Practice Question 01
The time period for classifying a liability as current is one year or the operating cycle, whichever is
Practice Question 05
Which one of the following is not a typical current liability?
Current maturities of long-term debt
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Practice Question 10
Buttner Company borrows $88,500 on September 1, 2017, from Harrington State Bank by signing an $88,500, 12%, one-year note. How much is accrued interest at December 31, 2017?
Practice Question 25
How is the market value of a bond issuance determined?
By computing the present value of the interest payments.
By adding the face value of the principal amount to the stated value of the interest payments.
By adding the present value of the principal amount to the present value of the interest payments.
By computing the present value of the principal
Practice Question 30
If the contractual rate of interest is lower than the market rate of interest, bonds will sell at a premium.
Practice Question 35
What is the effect of amortizing a bond discount?
There is no effect on the bond interest expense.
It increases the carrying value of the bonds.
It decreases the maturity value of the bonds.
It decreases bond interest expense
Practice Question 31
Cuso Inc. issues 10-year bonds with a maturity value of $200,000. If the bonds are issued at a premium, what does this indicate?
The market interest rate exceeds the contractual interest rate.
The contractual interest rate exceeds the market interest rate.
No relationship exists between the market and contractual rates.
The contractual interest rate and the market interest rate are the same
Practice Question 34
When a bond is sold at a premium, at what amount is it reported on the balance sheet?
Practice Question 36
Tanner, Inc. issued a 10%, 5-year, $100,000 bond when the market rate of interest was 12%. At what value will the bond sell?
Practice Question 46
Which of the following is not a commonly used method of presenting current liabilities on the balance sheet?
In order of magnitude or size.
Listing current debt in the order of oldest first and then chronologically.
In order of their maturity.
Listing currently maturing long-term debt first.
Course: ACC291 Principles Of Accounting II
School: University of Phoenix