A liability is due in one year or less is classified on the balance sheet as a
What is a current liability
100
Payroll and payroll tax liabilities are classified on the balance sheet as
What are current liabilities
100
A corporation is bound to a contract entered into by one of its stockholders
What is false
100
The date dividends are declared by the Board of Directors is called the
What is Date of Declaration
100
The reason why corporations purchase investments is because
What is having excess cash
200
When payment is accepted in advance of the goods being delivered
What is unearned revenue
200
Bonds issued at face value results in a debit to cash and a credit to
What is Bonds Payable
200
The amount of stock a corporation is allowed to sell is indicated in their charter and is called
What is Authorized Stock
200
Stockholders equity has two parts, common stock and
What is retained earnings
200
Certificates of deposit and money markets are a type of investments that are called
What is short term paper
300
If the market rate of interest is higher than the contractual rate, the bonds will sell at a
What is a discount
300
These bonds allow bondholders to convert the bonds into common stock
What are convertible bonds
300
Sale of stock payment amounts received in excess of amounts paid in over par value is recorded as
What is additional paid-in-capital
300
A Corporations own stock that has been issued, fully paid for, and reacquired but not retired
What is treasury stock
300
Investment in government and corporation bonds are called
What are debt investments
400
Bonds with a higher contractual interest rate than the market rate for similar bonds will probably sell
What is a premium
400
Unsecured bonds are issued against the general credit of the borrower; they are called
What are debenture bonds
400
Is the legal capital established for a share of stock
What is Par Value
400
When Treasury stock is purchased the accounting of the stock purchased is by the
What is the cost method
400
Investments that are readily marketable, and management intends to convert the investment into cash within the next year are called
What are short term investments
500
Bond premiums or Bond discounts must be amortized and the most popular amortization method is
What is the straight-line method
500
Discount on Bonds payable or Premium on Bonds Payable or used to derive the carrying value of bonds and are called
What are contra accounts
500
The holder of this kind of stock would not have the right to vote at stockholders meetings
What is a preferred stock holder
500
A feature that provides that preferred stockholders must be paid both current and prior year dividends before common stockholders receive any dividends.
What is cumulative dividends
500
A company that owns more than 50% of the common stock of another entity is known as