9A
9B
10A
10B
Stockholders' Equity
100
Small expenditures which primarily benefit the current period.
What are revenue expenditures?
100
Expected cash value of the asset at the end of its useful life.
What is the salvage value?
100
Bonds subject to retirement at a stated dollar amount prior to maturity.
What are callable bonds?
100
A measure of a company’s solvency.
What is times interest earned ratio?
100
The date the board of directors formally declares a dividend.
What is the declaration date?
200
Cost less accumulated depreciation.
What is book value?
200
Process of allocating the cost of equipment over its service life.
What is depreciation?
200
A legal document that sets forth the terms of a bond issue.
What is a bond indenture?
200
The rate investors demand for loaning funds to a corporation.
What is market interest rate?
200
Corporation’s own stock that has been reacquired by the corporation but not retired.
What is treasury stock?
300
An accelerated depreciation method used for financial statement purposes.
What is the double-declining-balance method?
300
Material expenditures that increase an asset's operating efficiency, productive capacity, or useful life.
What are capital expenditures?
300
Bonds that mature in installments.
What are serial bonds?
300
Bonds issued against the general credit of the borrower.
What are unsecured bonds?
300
Measures the percentage of earnings distributed in the form of dividends to common stockholders.
What is payout ratio?
400
Tangible resources that are used in operations and are not intended for resale.
What are plant assets?
400
An accelerated depreciation method used for tax purposes.
What is MACRS?
400
A measure of a company’s short-term liquidity.
What is current ratio?
400
Occurs when the contractual rate of interest is less than the market rate of interest.
What is discount on bonds payable?
400
The amount that must be retained in the business for the protection of creditors.
What is legal capital?
500
Equal amount of depreciation each period.
What is the straight-line method?
500
Useful life is expressed in terms of units of production or expected use.
What is units-of-activity method?
500
The time that the final payment on a bond is due from the bond issuer.
What is maturity date?
500
Produces a periodic bond interest expense that is the same amount each interest period.
What is straight-line method of amortization?
500
Preferred stockholders have a right to receive current and unpaid prior-year dividends before common stockholders receive any dividends.
What is cumulative feature?
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