Question 1

For many companies, current liabilities include

	accounts payable
	interest payable
	short-term notes payable
	all of the above
Question 2

A company issues a $15,000, 5.5% note due in 90-days. How much interest will be due at maturity? (Use a 360-day year. Round answers to two decimal places.)

	$825.00
	$206.25
	none of the above
Question 4

See the previous question. On August 30, the due date of the account payable, what entry would our company make if they paid the account in full?

	Notes Payable 900,000 Purchase Discount 9,000 Cash 891,000
	Accounts Payable 900,000 Cash 900,000
	Accounts Payable 891,000 Purchase Discount 9,000 Cash 900,000

Question 5

Convertible bonds may be ____.

	Retired early at the option of the issuing corporation
	Retired early at the option of the investor
	Converted into common stock at the option of the investor
Question 6

Bonds payable are usually classified under ____.

	Contingent liabilities
	Long-term liabilities
	Only in the notes to the financial statements
Question 7

A(n) ____ is a series of cash payments or receipts spaced equally in time.

	present value
	annuity
	Premium
Question 8

If the market rate is HIGHER than the contract rate, the bonds will sell at ____.

	A premium
	A discount
	Face amount

Question 16

A long term liability is a debt that can reasonably expected to be paid

	between 6 months and 18 months.
	out of current years revenues.
	at a period of time longer than one year.
Question 22

Bonds with a face amount $700,000, are sold at 102. The entry to record the issuance is

	Cash 700,000 Premium on Bonds Payable 14,000 Bonds Payable 714,000
	Cash 714,000 Premium on Bonds Payable 14,000 Bonds Payable 700,000
	Cash 714,000 Discount on Bonds Payable 14,000 Bonds Payable 700,000
Question 25

For many companies, current liabilities include

	accounts payable
	accounts receivable
	short-term notes payable
	a and c only