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Chapters 1-4 The Accounting Cycle
Chapters 5-8 Current Assets
Chapters 9-11 Long-Term Assets
Chapters 12-14 Liabilities/Equities
Chapters 15-16 Using Information
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20 Managerial/Cost
Chapters 21-24 Budgeting/Decisions

Chapter 13 - Goals Achievement

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Chapter 13 – Goals Achievement

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Question 1 of 15

1. Question
As a general rule, which type of note payable involves interest-only payments, with the full principal being due at maturity?
- level pay note
- term loan
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Question 2 of 15

2. Question
In computing the periodic payments on a loan that involves equal payments over the entire term, such that the last payment extinguishes the final amount of obligation, what basic calculation is called for?
- divide the loan amount by an annuity present value
- divide the loan amount by the number of periods
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Question 3 of 15

3. Question
Secured bonds are often known as debentures.
- true
- false
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Question 4 of 15

4. Question
Most bonds issued in recent years have been:
- registered
- coupon
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Question 5 of 15

5. Question
As the effective interest rate increases, the issue price of a bond (as determined by its discounted cash flow) will:
- increase
- decrease
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Question 6 of 15

6. Question
At the time a bond is issued, the Bonds Payable account is established for the face amount of the bond.
- true
- false
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Question 7 of 15

7. Question
The interest rate stated on the face of a bond is the:
- contract rate
- effective rate
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Question 8 of 15

8. Question
If a bond is issued at a premium, what relation will interest expense bear to the amount of cash paid for interest each period over the life of the bond?
- greater than
- less than
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Question 9 of 15

9. Question
Which amortization technique is theoretically superior?
- straight-line
- effective-interest
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Question 10 of 15

10. Question
The amortization of a premium will cause interest expense to:
- increase
- decrease
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Question 11 of 15

11. Question
Which of the following amortization techniques result in a level amount of interest expense over the life of a bond issue?
- straight-line
- effective-interest
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Question 12 of 15

12. Question
When bonds are issued between interest payment dates, the first interest payment will involve cash flow for:
- a full period's interest
- a partial period's interest
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Question 13 of 15

13. Question
When a bond is retired, any unamortized premium or discount should continue to be amortized over the remaining periods the bond would have been outstanding.
- true
- false
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Question 14 of 15

14. Question
In calculating the times interest earned ratio, what amount is included in both the numerator and denominator?
- interest expense
- net income
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Question 15 of 15

15. Question
It is a safe bet that all contractual commitments involving future payments are reported on the balance sheet as a liability.
- true
- false
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Chapters 1-4
Chapters 5-8
Chapters 9-11
Chapters 12-14
Chapters 15-16
- Chapter 15: Financial Reporting and Concepts
- Chapter 16: Financial Analysis and the Statement of Cash Flows
Chapters 17-20
Chapters 21-24
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