Let's Bond
When the market rate is lower than the stated rate, a bond is issued at this
What is a premium?
The minimum percentage of an asset's remaining economic life that triggers finance lease classification
What is 75%?
Of the two classes of stock, this one has voting rights
What is common stock?
A cash dividend becomes this type of account on the date it is declared
What is a liability (Dividends Payable)?
After a 2-for-1 stock split, these three things remain unchanged
What are legal capital, APIC, and total stockholders' equity?
Under the effective-interest method, this is what happens to the carrying value of a discount bond each period
What is it increases?
Of the two parties in a lease, this is the one who owns the asset and provides it for use
What is the lessor?
Cumulative preferred stockholders must receive this before common stockholders get any dividend
What are dividends in arrears?
Of the three — cash dividend, stock split, stock dividend — only this one reduces total assets
What is a cash dividend?
A company retires bonds early by paying $105,000 cash when the carrying value is $102,000. This is how the $3,000 difference is classified on the income statement
What is a loss on extinguishment of debt?
This type of bond gives the issuer the right to redeem it before maturity
What is a callable bond?
A lease is classified as a finance lease if the present value of lease payments equals or exceeds this percentage of the asset's fair valu
What is 90%?
Treasury stock is reported here on the balance sheet, reducing total equity
What is a contra-equity account?
A small stock dividend is recorded at this value, while a large stock dividend is recorded at par
What is market value?
During a career fair, the one genuine conversation where you learned something real about a company or role
What is one meaningful connection?
Unlike a term bond that repays all principal at maturity, this type of bond repays principal in installments over the life of the bond
What is a serial bond?
A lease automatically qualifies as a finance lease if ownership of the asset transfers to the lessee at this point
What is the end of the lease term?
When treasury stock is reissued below cost and APIC – Treasury Stock is exhausted, the remaining shortfall is charged here
What is Retained Earnings?
Repurchasing treasury stock mid-year can increase this metric even if net income is unchanged
What is earnings per share (EPS)?
Enron used these off-balance-sheet structures to hide billions in debt from investors and auditors, ultimately triggering one of the biggest accounting scandals in history
What are Special Purpose Entities (SPEs)?
This type of bond is backed only by the general creditworthiness of the issuer — no specific collateral is pledged
What is a debenture bond?
Both finance and operating leases (over 12 months) require the lessee to record these two items on the balance sheet
What are a right-of-use asset and a lease liability?
Treasury shares are excluded from this count, even though they remain legally issued
What is shares outstanding?
On this date related to cash dividends, no journal entry is required
What is the date of record?
This short, prepared speech — typically 30 seconds — summarizes who you are, what you study, and what you are seeking
What is an elevator pitch?