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Q6. When a company prepares a bond indenture, certain provisions of the bonds ar

ID: 2464638 • Letter: Q

Question

Q6. When a company prepares a bond indenture, certain provisions of the bonds are included. Which of the following is/are not specified in the indenture?
A. Dates of each interest payments.                 C. Maturity date.
B. Rate of interest to be paid.                          D. Cash to be received at the issue date.

Q7. Which of the following represents the shares currently in the hands of investors?
A. Authorized shares                                        C. Outstanding shares
B. Issued shares                                                            D. Unissued shares

Q8. Which of the following is a "contra" stockholders' equity account?
A. Retained earnings.                                       C. Treasury stock.
B. Preferred Stock.                                          D. Capital in excess of par value.

Q9. Kalriess company bought a building for $350,000 cash. The company paid transfer costs of $15,000. Renovation costs on the building were $20,000. Renovated building served as a warehouse. Heating bill for the year was $8,000. The recorded acquisition cost of the building is

A. $365,000    B. $370,000    C. $385,000    D. $393,000

Q10. In accounting, goodwill may be recorded when a company purchases another business.

A. True                                                B. False

Explanation / Answer

Q6. B. Rate of interest to be paid.

Q7. C. Outstanding shares

Q8. C. Treasury stock.

Q10. A. True