Exam (elaborations)
College Accounting Chapters 127 22nd Edition James A Heintz Robert W Parry- Test Bank 2
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College Accounting Chapters 127 22nd Edition James A Heintz Robert W Parry- Test Bank 2
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,Chapter 22—Corporations: Bonds1. A bond is an obligation of the shareholders.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.102 - LO: 22-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
2. Bondholders are the owners of the corporation.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.102 - LO: 22-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
3. Gain on Redemption is reported as a component of other income on the corporation's income statement.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.103 - LO: 22-5
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
Cengage Learning Testing, Powered by Cognero Page 1
,Chapter 22—Corporations: Bonds
4. Bonds Sinking Fund is reported as a liability on the corporation's balance sheet.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.103 - LO: 22-5
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
5. While bonds and notes are both formal written promises to pay an amount of money at a specified date, notes
generally tend to be for much smaller amounts and for a shorter period of time.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.102 - LO: 22-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
6. Bonds secured by a mortgage on corporate property are called guaranteed bonds.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.102 - LO: 22-1
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
Cengage Learning Testing, Powered by Cognero Page 2
, Chapter 22—Corporations: Bonds
7. A discount amortization does not affect the amount of cash paid for bond interest.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.104 - LO: 22-4
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
8. Premium on Bonds Payable should be classified as a contra-liability account.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.105 - LO: 22-3
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
9. If the stated interest rate on bonds is less than the current market rate, the bonds will sell at a discount.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: COLL.HEIN.17.104 - LO: 22-4
ACCREDITING STANDARDS: AICPA FN-Measurement
BUSPROG: Communication
TOPICS: ACBSP: APC-22-Long-Term Liabilities Reporting
KEYWORDS: Bloom's: Remembering
NOTES: 1 min.
Cengage Learning Testing, Powered by Cognero Page 3
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