On OCTOBER 31, 2011, Bondable, Inc. issued 20,000 of 10-year, 6 bonds at 100. The bonds pay interest ANNUALLY on October 31. How much cash will the company pay for interest on OCTOBER 31, 2012, the first interest payment date?
A) 2,000
B) 1,000
C) 1,200
D) 200
(
Q. 2) Under a periodic inventory system
a. accounting records continuously disclose the amount of inventory
b. a separate account for each type of merchandise is maintained in a subsidiary ledger
c. a physical inventory is taken at the end of the period
d. merchandise inventory is debited when goods are returned to vendors
(
Q. 3) Match each of the following with the appropriate definitions.
a. Statement of cash flows
b. Balance sheet
c. Income statement
d. Statement of changes in shareholders' equity
_____ 1. A financial statement that presents assets, liabilities, and shareholders' equity.
_____ 2. A financial statement that presents revenues minus expenses to show either a profit or loss.
_____ 3. A financial statement that presents the changes in shareholder's equity for an accounting period.
_____ 4. A financial statement that presents all the cash collected and all the cash disbursed during an accounting period.
_____ 5. A financial statement that reports the financial position of the company at a point in time.
(
Q. 4) Forced vacations is a policy of requiring an employee to take leave from the job and substitute another employee in his or her place.
Indicate whether the statement is true or false
(
Q. 5) Credit terms of 2/10, n/30 provide for a 10 percent discount if the buyer pays within 30 days.
Indicate whether the statement is true or false
(
Q. 6) Payroll taxes withheld to provide Social Security and Medicare benefits are called ____________________.
Fill in the blank(s) with correct word
Quick Reply
