True or False The Bonds Payable account would be credited for $104,000 to record
ID: 2453259 • Letter: T
Question
True or False
The Bonds Payable account would be credited for $104,000 to record the issuance of $100,000 par value, 10 percent bonds at a market price of 104.
Land purchased for a future building site or as an investment would not be shown in the Property, Plant, and Equipment section of the balance sheet.
Investors will pay an amount greater than the face amount of a bond if the face interest rate on bonds is greater than the market interest rate.
When common stock is issued, the par value, or stated value, of the shares issued is recorded in the Common Stock account.
Quick assets include cash, receivables, and inventories.
The current ratio is a measure of profitability.
The stockholders of a corporation are agents of the corporation empowered to act for the firm.
An appropriation of retained earnings reduces the amount of retained earnings available for dividend declarations.
The cost of merchandise withdrawn by a partner for personal use is recorded as a debit to the partner's drawing account and a credit to the Purchases account.
The ability of a company to pay its debts when due is known as liquidity.
In the case of liquidation, bondholders and other creditors must be paid in full before stockholders can receive anything.
Use of the sum-of-the-years'-digits method of depreciation results in lower depreciation charges in the early years of an asset's life and higher charges in the later years.
Investments by a partner are credited to that partner's capital account.
The entry to record the amortization of acquisition cost of an intangible asset includes a credit directly to the intangible asset account.
A high ratio of stockholders' equity to total liabilities indicates a greater risk for creditors.
The recorded cost of an asset should include both the net invoice price and all transportation and installation costs.
The price-earnings ratio compares the present market value of a corporation's common stock with the earnings per share of that stock.
Declarations of cash dividends and stock dividends are debited to the Retained Earnings account.
A decrease in cost of goods sold from 46. 5% to 45. 0% from 2009 to 2010 indicates a favorable long-term trend.
Comparison of amounts and percentages for only two years is adequate to indicate long-term trends.
Explanation / Answer
True or False The Bonds Payable account would be credited for $104,000 to record
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