1.Current liabilities could include all of the following except: an accounts pay

Question

1.Current liabilities could include all of the following except:

an accounts payable due in 30 days.

a notes payable due in 9 months.

a bank loan due in 18 months.

any part of long-term debt due during the current period.

2.Accrued liabilities could include all of the following except:

Wages and Salaries Payable.

Current Portion of Long-Term Debt.

Income Tax Payable.

Interest Payable.

3.The total amount of interest that will be paid on a four-month, $6,500, 9% note payable equals:

$585

$292

$146

$195

4.If the market rate of interest is 6%, a $10,000, 10-year bond with a stated annual interest rate of 8% would be issued at an amount:

less than face value.

equal to the face value.

greater than face value.

equal to the face value minus a discount.

5.A company issues 100,000 shares of preferred stock for $40 a share. The stock has fixed annual dividend rate of 5% and a par value of $3 per share. If sufficient dividends are declared, preferred stockholders can anticipate receiving dividends of:

$5,000 each year.

$15,000 each year.

5% of net income each year.

$3 per share.

6.A company issued 500,000 shares of preferred stock for $30 a share. The stock has a fixed annual dividend rate of 5% and a par value of $9 per share. The current price of the preferred stock is $32 a share. If sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of:

$0.45 per share.

$1.50 per share.

$1.60 per share.

$1.05 per share.

Explanation / Answer

As per Chegg guidelines we answer one question per post but I have answered more than 1 Question Q1 a bank loan due in 18 months. Since it is long term liability Q2 Current Portion of Long-Term Debt. Since loan is not an expense so never accrues Q3 $195 Interest = 6500 *9%*4/12                   195.00 Q4 greater than face value. Since market interest rate is lower than coupon rate Q5 $15,000 each year Preferred dividend = 100,000*3*5% Q6 .45 per share Preferred dividend = 9*5%

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