Accounting

Bonds that have interest coupons attached to their certificates, which the bondholders detach during each interest period and present to a bank for collection, are called:

Coupon bonds

Callable bonds

Serial bonds

Convertible bonds

 

27. The Discount on Bonds Payable account is:

A liability

A contra liability

An expense

A contra expense

A contra equity

 

28. Shamrock Company had net income of $30,000. On January 1, there were 8,000 shares of common stock outstanding. On April 1, the company issued an additional 2,000 shares of common stock. There were no other stock transactions. The company has an earnings per share of:

$3.75

$3.00

$3.33

$15.00

$3.16

 

29. What is the debt to equity ratio for a company who has $700,000 in total liabilities and $3,500,000 in total equity?

20%

5

$2,100,000

2%

.5

 

30. A bond sells at a discount when the:

Contract rate is above the market rate

Contract rate is equal to the market rate

Contract rate is below the market rate

Bond has a short-term life

Bond pays interest only once a year

Solution: