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Current and Long-Term Liabilities in Accounting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is the term for when a bond is due?

Question 2 2. Which of these bond types are issued in the names and addresses of their holders?

Question 3 3. Which of these bond types are bonds in which a portion of the outstanding bonds mature or become due at several dates which typically fall in a series?

Question 4 4. Which of the following statements is true about bonds?

Question 5 5.

X is a type of bond that is payable to whoever holds it. As such, anyone can claim ownership of X. Because of the risk associated with X, very few are in circulation today.

Identify X.

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Question 6 6. Which of these bond types provides the bondholder with the right to exchange the bond for a specific number of shares in the company's common stock before the maturity date?

Question 7 7. Which of these bond types allow the issuer the opportunity to retire a bond at a stated dollar amount before reaching maturity?

Question 8 8. Which of the following describes the effect of bond financing on owner control?

Question 9 9. How is an unsecured bond different from a secured bond?

Question 10 10. Which of the following is a considered an advantage of bond financing?

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Question 11 11. Which of these bond types use the issuer's general credit rating to back the bond?

Question 12 12. When does a term bond become mature?

Question 13 13. The Fudge Factory issues a bond with a par value of $100,000 that pays an interest rate of 7% annually for 10 years. How much will each semiannual (every six months) coupon payment be?

Current and Long-Term Liabilities in Accounting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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