Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as
A. capital expenditures
B. expense expenditures
D. revenue expenditures
Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as: D. revenue expenditures. [http://flashcarddb.com/cardset/44871-exam-number-3-flashcards
]Auto answered|Score 1|alfred123|Points 2124|User:
When an interest-bearing note matures, the balance in the Notes Payable account is
A. less than the total amount repaid by the borrower
B. the difference between the maturity value of the note and the face value of the note
C. equal to the total amount repaid by the owner
D. greater than the total amount repaid by the owner
C. equal to the total amount repaid by the ownerAuto answered|Score .5958|Shey091808|Points 863|User:
The interest charged on a $200,000 note payable, at a rate of 6%, on a 2-month note would be
e interest charged on a $200,000 note payable, at a rate of 6%, on a 2-month note would be D. $2,000 Auto answered|Score 1|colossus09|Points 112|User:
If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?
The annual net cash cost is D. $210,000
]Auto answered|Score .9819|MrG|Points 4345|User:
Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 2011. Each January the company is required to pay $75,000 on the note. How will this note be reported on the December 31, 2012 balance sheet?
A. Long-term debt, $300,000.
B. Long-term debt, $225,000.
C. Long-term debt, $150,000; Long-term debt due within one year, $75,000.
D. Long-term debt, $225,000; Long-term debt due within one year, $75,000.
Long-term debt, $150,000; Long-term debt due within one year, $75,000.Auto answered|Score .9309|jeifunk|Points 9995|User:
A corporation issued $600,000, 10%, 5-year bonds on January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%. Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2011, is
the amount of bond interest expense to be recognized on July 1, 2011, is $25,946 Auto answered|Score .5296|piash|Points 3306|User:
When the effective-interest method of bond discount amortization is used
A. the applicable interest rate used to compute interest expense is the prevailing market interest rate on the date of each interest payment date
B. the carrying value of the bonds will decrease each period
C. interest expense will not be a constant dollar amount over the life of the bond
D. interest paid to bondholders will be a function of the effective-interest rate on the date the bonds were issued
C - Interest expense will not be a constant dollar amount over the life of the bondAuto answered|Score 1|shifa saleheen|Points 9966|User:
If a corporation has only one class of stock, it is referred to as
A. classless stock
B. preferred stock
C. solitary stock
D. common stock
D. common stockAuto answered|Score .9706|jeifunk|Points 9995|User:
Capital stock to which the charter has assigned a value per share is called
A. par value stock
B. no-par value stock
C. stated value stock
D. assigned value stock
A. par value stockAuto answered|Score .8219|jeifunk|Points 9995|User:
ABC, Inc. has 1,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011. What is the annual dividend on the preferred stock?
A. $50 per share
B. $5,000 in total
C. $500 in total
D. $.50 per share
Answer: B - $5,000 in total
]Auto answered|Score 1|Luvsdragonflies|Points 30|
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