Ünite Sınavı Soruları

Which of the following statements is not correct? 

"............. consist of an expected outflow of resources arising from present obligations that are not payable within a year or the operating cycle of the company whichever is longer."

Which of the following would optimally complete the space left blank in the above sentence?

............... bonds are not backed by a pledge of some collaterals, unlike secured bonds for which a company has pledged specific property to ensure its payment?

Which of the following can set of the interest rate?

Which of the following is not a long term liability item?

Which of the following about long term notes is false?

1. Long term debt has various covenants or restrictions for the protection of both lenders and borrowers.
2. The covenants and other terms of the agreement between the borrower and the lender are stated in the bond indenture or note agreement.
3. The management issues related to long-term debt financing are whether to take on long-term debt, how much long-term debt to carry, and what types of long-term debt to incur.
4. Bonds payable, long-term notes payable, mortgages payable, pension liabilities and lease liabilities can be given as the example to long term liabilities.

Which of the statements above related to longterm liabilities are correct?

Most companies are required to obtain long term financing from banks and other financial institutions. What is this called?

1. The interest rate written in terms of the bond indenture is known as the stated interest rate.
2. Stated interest rate is also called as coupon or nominal rate.
3. The interest rate written in terms of the bond indenture is set by the bond issuer.
4. Stated interest rate is expressed as a percentage of the face value.
5. Face value is also called as the par value, principal amount or maturity value of the bonds.

Which of the statements above related to the stated interest rate are correct?

What is the effective interest method?

1. A long-term note is a promissory note that represents a loan from a bank or other creditor.
2. Long-term notes payable is similar to short-term notes payable except that the term of the notes exceeds one year.
3. The basic difference between short term notes payable and long-term notes payable is the maturity date.
4. Long-term notes payable is typically reported in the long-term liabilities section of the balance sheet.

Which of the statements above related to long term notes payable are correct?

1. Installment notes are generally used to purchase specific assets such as equipment, and typically secured by the purchased asset.
2. When a note is secured by an asset, it is called a mortgage note.
3. If the borrower cannot pay the mortgage note, the lender has the right to take ownership of the pledged asset and sell it to pay back the debt.
4. Mortgages payable are very similar to long-term notes payable.
5. The main difference is the mortgages payable is secured with specific assets, whereas long-term notes are not secured with specific assets.

Which of the statements above related to long term notes payable are correct?

".................. consist of an expected outflow of resources arising from present obligations that are not payable within a year or the operating cycle of the company whichever is longer."

Which of the following best describes the space left blank in the above sentence?

What is the discount amortized in the first $5,000 interest payment of bond with a selling price of $106,250 and with semiannual interest payments, if the market interest rate is 7%? 

Which of the following is true of the premium on bonds payable?

Which of the following consists an expected outflow of resources arising from present obligations that are not payable within a year or the operating cycle of
the company whichever is longer?

1. Each bondholder receives a bond certificate showing the name of the company that borrowed the money, exactly like a note payable.
2. The certificate specifies the face value, which is the amount of the bond issue.
3. The bond’s face value is also called maturity value, principal, or par value.
4. A bond arises from a contract known as a bond indenture and represents a promise to pay a sum of money at a designated maturity rate and periodic interest at a specified rate on the maturity amount (face value).

Which of the statements above related to bonds are correct?

Which of the following is not a long term liability?

1. By paying more or less at the issuance, investors earn a rate different than the stated rate on the bond.
2. The issuing company pays the stated interest rate over the term of the bonds but also must pay the face value at maturity.
3. If the bond is issued at a discount, the amount paid at maturity is more than the selling price.
4. If issued at premium, the company pays less at maturity relative to the selling price.
5. The company records this adjustment to the cost as bond interest expense over the life of the bonds through a process called amortization.
6. Amortization of a discount increases bond interest expense.
7. Amortization of a premium decreases bond interest expense.

Which of the statements above related to amortization of bond discounts and premiums are correct?

Anadolu Co. issued 200,000 TL of 12% 5 year bonds on January 1, 2019, interest is payable annually. Market interest rate was 10%. The principal amount borrowed will be paid back once at maturity. Calculate the selling price of bonds and make the necessary journal entry as of the issue date.