Accounting 302 Online Quizzes

6 Questions | Total Attempts: 305

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Accounting 302 Online Quizzes

Accumulation of Styles' online quizzes


Questions and Answers
  • 1. 
    What is the contract that gives rise to a bond?
    • A. 

      Bond debenture

    • B. 

      Bond Indenture

  • 2. 
    The interest rate written in terms of the bond indenture is known as the?
    • A. 

      Stated rate

    • B. 

      Coupon rate

    • C. 

      Nominal rate

    • D. 

      Stated, coupon, or nominal rate

  • 3. 
    What is the actual interest a bondholder receives?
    • A. 

      Stated rate of interest

    • B. 

      Interest yield

    • C. 

      Effective yield

  • 4. 
    How is the effective rate of interest calculated?
    • A. 

      Multiply the carrying value of the bonds at the beginning of the period by the effective interest rate.

    • B. 

      Multiply the face value of the bonds by the effective interest rate.

  • 5. 
    What is common stock?
    • A. 

      A residual corporate interest

    • B. 

      Bears the ultimate risk of loss and receives the benefits of success

    • C. 

      Generally control the management

    • D. 

      Tend to profit most if the company is successful

    • E. 

      All of the above

  • 6. 
    What do preferred stock holders sacrifice?
    • A. 

      A right to share in profits beyond the stated rate

    • B. 

      Preemptive right

    • C. 

      A right to a voice in management

    • D. 

      A & C

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