If bonds are issued at a discount, it means that the
Question 16
In the balance sheet, the account Discount on Bonds Payable is
Question 17
If bonds have been issued at a discount, then over the life of the bonds the
Question 18
Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the
company redeemed the bonds at 101, what would be the gain or loss on the redemption?
Question 19
The relationship between current assets and current liabilities is
Question 20
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ACC 556 Chapter 12 Quiz (100% Score)
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Chapter 12 Quiz
Question 1
The statement of cash flows is a required statement that must be prepared along with an income
statement, balance sheet, and retained earnings statement.
Question 2
The activity from the balance sheet to be presented in the financing activities section of the
statement of cash flows is based on an analysis of stockholders’ equity only.
Question 3
The acquisition of a building by issuing bonds would be considered an investing and financing
activity that did not affect cash.
Question 4
The cash debt coverage ratio indicates a company’s ability to repay its liabilities from cash
generated from operations.