FINANCIAL ACCOUNTING EXAM...HELP!?

Posted on 2014-04-14 10:16:00 in Economics by DOGGYLOVER

17.) which of the following statements correctly describes the accounting for bonds that were issued at a discount?



a.) the market rate of interest is less than the stated interest rate

b.) the interest expense over the life of the bonds will be less than the cash interest payments

c.) the present value of the bonds future cash flows is greater than the bonds maturity value

d.) the book value of the bond liability increases when interest payments are made on the due dates



18.) which of the following statements about the capital acquisitions ratio is correct?



a.) a high ratio indicates less need for outside financing of property, plant, and equipment

b.) the ratio is computed by dividing cash flow from operations by the average net property, plant, and equipment

c.) a low ratio may indicate a failure to update property, plant and equipment which can limit a companies ability to compete in the future

d.) the ratio is comparable across industries



19.) which of the following would not be a cash flow from financing activities?



a.) issuance of common stock for cash

b.) borrowing cash on a long-term note payable

c.) collection of a cash dividend

d.) repayment of principal on a long-term note payable



20.) which of the following is correct?



a.) repayments of principal and interest reduce financing activities cash flows

b.) repurchase of treasury shares is a cash outflow connected to investing activities

c.) if a company borrows $450 million in long-t

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