ACC 131 Exam 4 ISU Questions and Answers Already Passed Latest Update 2025-2026
bond holders do not have - Answers voting rights
individual bond x face value = - Answers bond issue amount
market for bonds - Answers public securities markets
interest on bonds is - Answers tax deductible
dividents paid to shareholders is - Answers not tax deductible
borrowed amounts must be paid at - Answers maturity
entitles bond holders to claims on company assets and serves as protection/collateral -
Answers secured bonds
collateral to secure is your reputation - Answers unsecured bonds
bonds that mature over several dates and smaller amounts - Answers serial bonds
bonds that mature on a single date - Answers term bonds
lender advantage that gives the option to convert the bonds into other securities such as
common stock - Answers convertibility feature
borrow advantage that allows you to repay bonds early - Answers call feature/price
perform a contract with a bond holder - Answers bond indenture
bond prices are expressed/quoted as a - Answers percentage of face/par value
represent the amount of money received from each bond issuer - Answers price of bonds
things that affect interest rates - Answers monetary policy, macroeconomics, industry/company,
specific factors, risk
maximum # of shares that can be issues by a company - Answers authorized stock
stock that was issued/sold to share holders and they continue to own it - Answers outstanding
stock
contributed capital stockholders investments - Answers common stock, APIC, SE
stock originally sold to shareholders later reacquired by corporation that is still considered
issued, but no longer outstanding
stated/legal capital of a share - Answers treasury stock
, stated/legal capital of a share of stock and establishes minimum amount to acquire the stock,
board of directors - Answers par value
par value x # of shares issued = - Answers common stock amount
the greatest risk of loss, but greatest chance for rewards - Answers common stock
can be issued with or without a par value - Answers preferred stock
no par stock is legal capital of issued stock defined by - Answers state law
What three things increases when outstanding shares are reduced? - Answers increases
earnings
increases market value of remaining shares
increases remaining shareholders proportionate interest in the company
three options for treasury stock - Answers hold indefinitely
reissue
retire
no dividends and voting rights until - Answers reissued
cannot recognize gains and losses in transactions with - Answers their own stock
gains = increase in SE
losses = decrease in SE
treasury stock is recorded as a ______ and a _______ account - Answers normal balance debit,
contra equity
reported as last item in SE section
subtraction
return on investment that is not an expense, transactions with owners and paid in cash quarterly
- Answers dividends
3 dates important to dividends - Answers declaration date (JE)
record date (no JE)
payment date
Journal entry for declaration of dividends - Answers dividends declared
bond holders do not have - Answers voting rights
individual bond x face value = - Answers bond issue amount
market for bonds - Answers public securities markets
interest on bonds is - Answers tax deductible
dividents paid to shareholders is - Answers not tax deductible
borrowed amounts must be paid at - Answers maturity
entitles bond holders to claims on company assets and serves as protection/collateral -
Answers secured bonds
collateral to secure is your reputation - Answers unsecured bonds
bonds that mature over several dates and smaller amounts - Answers serial bonds
bonds that mature on a single date - Answers term bonds
lender advantage that gives the option to convert the bonds into other securities such as
common stock - Answers convertibility feature
borrow advantage that allows you to repay bonds early - Answers call feature/price
perform a contract with a bond holder - Answers bond indenture
bond prices are expressed/quoted as a - Answers percentage of face/par value
represent the amount of money received from each bond issuer - Answers price of bonds
things that affect interest rates - Answers monetary policy, macroeconomics, industry/company,
specific factors, risk
maximum # of shares that can be issues by a company - Answers authorized stock
stock that was issued/sold to share holders and they continue to own it - Answers outstanding
stock
contributed capital stockholders investments - Answers common stock, APIC, SE
stock originally sold to shareholders later reacquired by corporation that is still considered
issued, but no longer outstanding
stated/legal capital of a share - Answers treasury stock
, stated/legal capital of a share of stock and establishes minimum amount to acquire the stock,
board of directors - Answers par value
par value x # of shares issued = - Answers common stock amount
the greatest risk of loss, but greatest chance for rewards - Answers common stock
can be issued with or without a par value - Answers preferred stock
no par stock is legal capital of issued stock defined by - Answers state law
What three things increases when outstanding shares are reduced? - Answers increases
earnings
increases market value of remaining shares
increases remaining shareholders proportionate interest in the company
three options for treasury stock - Answers hold indefinitely
reissue
retire
no dividends and voting rights until - Answers reissued
cannot recognize gains and losses in transactions with - Answers their own stock
gains = increase in SE
losses = decrease in SE
treasury stock is recorded as a ______ and a _______ account - Answers normal balance debit,
contra equity
reported as last item in SE section
subtraction
return on investment that is not an expense, transactions with owners and paid in cash quarterly
- Answers dividends
3 dates important to dividends - Answers declaration date (JE)
record date (no JE)
payment date
Journal entry for declaration of dividends - Answers dividends declared
