Question 1

When bonds are converted into common stock,

Question 2

Which of the following is not an advantage of issuing bonds instead of common stock?

Question 3

Each payment on a mortgage note payable consists of

Question 4

Each of the following accounts is reported as long-term liabilities except

Question 5

Premium on Bonds Payable

Question 6

The current balance sheet of Greyson Inc. reports total assets of $40 million, total liabilities of $4 million, and stockholders' equity of $36 million. Greyson is considering several financing possibilities in order to expand operations. What will be the effect on Greyson's debt to assets ratio if Greyson issues an additional $8 million in stock to finance its expansion?

Question 7

The market value (present value) of a bond is a function of all of the following except the

Question 8

A $600,000 bond was retired at 98 when the carrying value of the bond was $590,000. The entry to record the retirement would include a

Question 9

In a recent year Joey Corporation had net income of $150,000, interest expense of $40,000, and tax expense of $20,000. What was Joey Corporation's times interest earned for the year?

Question 10

The 2018 financial statements of Marker Co. contain the following selected data (in millions).

Current Assets: $ 75

Total Assets: $140

Current Liabilities: $40

Total Liabilities: $90

Cash: $8

The debt to assets ratio is:

Question 11

A company has the following assets:

Buildings and Equipment, less accumulated depreciation of $2,000,000 $9,600,000

Copyrights $960,000

Patents $4,000,000

Timberlands, less accumulated depletion of $2,800,000 $4,800,000

The total amount reported under Property, Plant, and Equipment would be

 Question 12

Able Towing Company purchased a tow truck for $180,000 on January 1, 2017. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $36,000. On December 31, 2019, before adjusting entries had been made, the company decided to change the remaining estimated life to 4 years (including 2019) and the salvage value to $5,000. What was the depreciation expense for 2019?

Question 13

A company exchanges its old office equipment and $80,000 for new office equipment. The old office equipment has a book value of $56,000 and a fair value of $40,000 on the date of the exchange. The cost of the new office equipment would be recorded at:

Question 14

Equipment with a cost of $400,000 has an estimated salvage value of $25,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours?

Question 15

During 2018, Rathke Corporation reported net sales of $3,000,000, net income of $1,200,000, and depreciation expense of $100,000. Rathke also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Rathke's asset turnover is

Question 16

A machine with a cost of $480,000 has an estimated salvage value of $30,000 and an estimated useful life of 5 years or 15,000 hours. It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours?

Question 17

Equipment that cost $420,000 and on which $200,000 of accumulated depreciation has been recorded was disposed of for $180,000 cash. The entry to record this event would include a

Question 18

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2018. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize a

Question 19

A truck costing $110,000 was destroyed when its engine caught fire. At the date of the fire, the accumulated depreciation on the truck was $50,000. An insurance check for $125,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

Question 20

Eckman Company purchased equipment for $120,000 on January 1, 2017, and will use the double-declining-balance method of depreciation. It is estimated that the equipment will have a 5-year life and a $6,000 salvage value at the end of its useful life. The amount of depreciation expense recognized in the year 2019 will be

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