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Companies use the _____ _____ method when converting bonds. - correct answer Companies use the BOOK VALUE method when converting bonds. Can a gain or loss be recognized upon conversion of a debt to equity? - correct answer No If the journal entry to convert Preferred Stock into Common Stock winds up needing help on the debit side of the transaction, the plug would be to ________ _________ instead of _______. - correct answer If the journal entry to convert Preferred Stock into Common St...

long-term legal requirements - correct answer debit Loss on Settlement of Asset Retirement Obligation for $75000 - correct answer Lifeline Biofuels built an oil rig at a cost of $4.5 million. At the time that construction was complete, the company estimated the oil rig would have a useful life of 20 years (with no salvage value), after which Federal regulations would require that the oil rig be dismantled and the land area restored. The fair value of this asset retirement project was $82...

Equity securities - correct answer are described as securities representing ownership interest such as common, preferred, or other capital stock. Page(s): 17-2, Study Guide to accompany Intermediate Accounting, Volume 2, 15th Edition by Donald E. Kieso, Wiley, John & Sons, Incorporated NOOK Study ( , ). This material is protected by copyright. Investee - correct answer generally determines the accounting treatment for the investment subsequent to acquisition. fair value method - cor...

1. raise equity capital without giving up more control of co. 2. obtain financing at cheaper rates - correct answer Why do companies issue convertible bonds? Dilutive securities - correct answer Convertible securities as well as options, warrants, and other securities that reduce EPS Convertible bonds - correct answer bonds that can be changed into other corporate securities during some specified period of time after issuance. Liabilities Recording convertible bonds at date of issue...

1. raise equity capital without giving up more control of co. 2. obtain financing at cheaper rates - correct answer Why do companies issue convertible bonds? Dilutive securities - correct answer Convertible securities as well as options, warrants, and other securities that reduce EPS Convertible bonds - correct answer bonds that can be changed into other corporate securities during some specified period of time after issuance. Liabilities Recording convertible bonds at date of issue...

1. raise equity capital without giving up more control of co. 2. obtain financing at cheaper rates - correct answer Why do companies issue convertible bonds? Dilutive securities - correct answer Convertible securities as well as options, warrants, and other securities that reduce EPS Convertible bonds - correct answer bonds that can be changed into other corporate securities during some specified period of time after issuance. Liabilities Recording convertible bonds at date of issue...

Intangible Assets - correct answer Lack of physical existence, Not financial instruments, Long-term Assets Common Types: Patents, Copy Rights, Franchises, Trademarks, Goodwill Valuation of Intangible Assets - correct answer Companies record at cost when purchased from another company. Cost includes all costs included in getting it ready for intended use. Includes Purchase Price, Legal Fees, and other incidental expenses. Costs of Internally created intangible assets are - correct answer g...

What is the primary purpose of the statement of cash flows? - correct answer To provide relevant information about the cash receipts and cash disbursements of a company. The information provided in the statement of cash flows can assist users to assess: - correct answer (1) A company's ability to meet its obligations, ability to pay dividends, and its need for external financing (2) The reasons for differences between net income and the net increase in cash. What are cash equivalents...

The "treasury stock" method of calculating shares outstanding for diluted earnings per share is used when? A. bonds are converted to common stock B. preferred stock is converted to common stock C. stock options are exercisable D. treasury stock has been reissued - correct answer C. stock options are exercisable Which of the following is NOT a classification for debt securities investments? A. available for sale B. consolidated C. held to maturity D. trading - correct answ...

The most common type of liability is: - correct answer One to be paid in cash and for which the amount and timing are known Which of the following is the BEST definition of a current liability? - correct answer An obligation expected to be satisfied with current assets or by the creation of other current liabilities Which of the following is NOT a liability? - correct answer An unused line of credit Current liabilities normally are recorded at their: - correct answer Maturit...