Question

True or False- When bonds are sold at a market price of 105, thecash received for the bonds is 105 percent of face value.

True or False- A 3-for-2 stock split will triple the reporteddollar amount of stockholders’ equity.

True or False- When a corporation pays bond interest, BondInterest Expense is debited.

True or False- On a comparative balance sheet that showshorizontal analysis, the percentage of change in total assets mustequal the percentage of change in total liabilities andstockholders’ equity.

True or False-Stock is issued to investors at the time they signthe stock subscription contract.

True or False- The salvage value is the value that the asset isexpected to have at the end of its useful life.

True or False-When a corporation purchases its own stock andintends to reissue that stock at a later date, the cost of theshares is shown in the Assets section of the balance sheet untilthe stock is reissued.

True or False- It is customary for a partnership’s incomestatement to show how the net income or loss for the year has beendivided between the partners.

True or False-Organization costs are carried indefinitely as anintangible asset in the records of the corporation.

True or False-Before dividends can be paid, they must bedeclared and voted upon by the shareholders.

True or False-The journal entry to record the division of apartnership profit consists of a debit to each partner’s capitalaccount and a credit to Cash.

True or False-Accumulated Depreciation is classified as a contraasset account.

True or False-The Bond Interest Expense account is usuallylisted under Operating Expenses on the income statement.

True or False-When shares of a corporation’s stock aretransferred from one investor to another, an entry is recorded inthe capital stock transfer journal.

True or False-The book value of an asset is usually the same asthe fair market value of the asset.