About the Author
Mission Statement
Contact Us
Terms of Use
Privacy Policy
Log out

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 - Multiple Choice

Home
quizzes

Chapter 13 – Multiple Choice

Text
Problems
Goals Achievement
Fill in the Blanks
Multiple Choice
Glossary

Time limit: 0

Quiz Summary

0 of 8 Questions completed

Questions:

Information

You have already completed the quiz before. Hence you can not start it again.

Quiz is loading…

You must sign in or sign up to start the quiz.

You must first complete the following:

Results

Quiz complete. Results are being recorded.

Results

0 of 8 Questions answered correctly

Your time:

Time has elapsed

You have reached 0 of 0 point(s), (0)

Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)

Categories

Not categorized 0%

1
2
3
4
5
6
7
8

Current
Review
Answered
Correct
Incorrect

Question 1 of 8

1. Question
The present value factor at 8% for one period is 0.92593, for two periods is 0.85734, for three periods is 0.79383, for four periods is 0.73503, and for five periods is 0.68058. Given these factors, what amount should be deposited in a bank today to grow to $100 three years from now?
- $100/0.79383
- $100/(0.92593/3)
- ($100/0.92593 + $100/0.85734 + $100/0.79383)
- $100 X 0.79383
Correct

Incorrect
Question 2 of 8

2. Question
You are thinking of borrowing $250,000 to buy a new house. If you are going to finance this purchase at 12% interest per annum, and make 360 level monthly payments to pay off the loan, how much will your payments be?
- $250,000/360
- $250,000/present value factor for lump sum at 360 months and 1% per period
- $250,000/present value factor for annuity of 360 months at 1% per period
- $250,000 X present value factor for annuity of 360 months at 1% per period
Correct

Incorrect
Question 3 of 8

3. Question
Assume that Kamchatny Vladimir borrowed $100,000 on January 1 of Year 1, at 5% interest per annum. On December 31, of Year 1, an $8,000 payment is made. On December 31, of year 2, another $8,000 payment is made. Using normal assumptions about interest and principal reduction, how much is the unpaid balance of Vladimir’s loan after the second payment?
- $100,000
- $94,000
- $93,850
- $84,000
Correct

Incorrect
Question 4 of 8

4. Question
Bonds payable should be disclosed on the balance sheet.
- At their face value minus any unamortized premiums.
- At their face value plus any unamortized premiums.
- At their maturity value.
- At their face value.
Correct

Incorrect
Question 5 of 8

5. Question
When the contract interest rate for a bond exceeds the effective interest rate of the bond, then:
- The price of the bond will be equal to the future cash flow associated with the bond.
- The bond will be issued at a premium.
- The bond will be issued at a discount.
- The face value of the bond will fluctuate over its life.
Correct

Incorrect
Question 6 of 8

6. Question
On April 1, 20X1, German Corporation issued $100,000 of 7%, 5-year bonds dated April 1, 20X1, at 101. Interest is paid on March 31 and September 30. The proper entries to record bond interest expense for the (entire) year ended 20X1 would include a decrease in interest expense for premium amortization in the amount of (round to the nearest dollar and assume straight-line amortization):
- $0
- $117
- $150
- $200
Correct

Incorrect
Question 7 of 8

7. Question
Jeske Company issued $1,000,000 of 8% bonds at a time when the market rate of interest was 10%. If the bonds were issued at a $50,000 discount and interest was paid annually, how much was interest expense for the first full year of the bond issue (utilize the effective-interest amortization technique)?
- $76,000
- $80,000
- $95,000
- $100,000
Correct

Incorrect
Question 8 of 8

8. Question
Billings Corporation retired $1,000,000 face of bonds payable. At the time of the retirement, the bonds had unamortized discount of $20,000, and all interest accruals and payments were current. Under the outstanding covenants, Billings was required to pay the bond holders 103.
- The transaction caused Billings to recognize a loss of $50,000.
- The transaction caused Billings to recognize a gain of $50,000.
- The transaction caused Billings to recognize a loss of $30,000.
- The transaction caused Billings to recognize a gain of $20,000.
Correct

Incorrect

Click here to visit the bookstore and purchase principlesofaccounting.com textbooks!

Additional Resources

Illustrative Entries

Examples of journal entries for numerous sample transactions

Account Types

Typical financial statement accounts with debit/credit rules and disclosure conventions

Glossary

Includes financial and managerial terms

Time Value of Money

Future and present value tables

Important Links

Classroom
ExamCram
Bookstore
YouTube videos
MyExceLab
Cookie Policy

Glossary Search

Principlesofaccounting.com ™ Copyright © 2023. All rights reserved.

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
About the Author
Mission Statement
Contact Us
Terms of Use
Privacy Policy
Log out