8/29/25, 6:47 AM ACG 3113 - Final Exam , QUESTIONS WITH ACCURATE ANSWERS | MULTIPLE CHOICES |2025\2026!! Flashcards | Quizlet
ACG 3113 - Final Exam , QUESTIONS WITH
ACCURATE ANSWERS | MULTIPLE CHOICES
|2025\2026!!
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Terms in this set (61)
Allen Industries sells proportional - We are given two values of the bonds
20,000 bonds with a par and the detachable warrant. We will opt to use the
value of $500. Each bond proportional method to allocate the proceeds using
comes with a detachable the proportion of the two amounts, based on fair
warrant. Allen knows the values. With the incremental method, the value of the
market price of the lump-sum purchase is first allocated to securities with
warrants is $20 and that known market values. The remaining value of the
similar bonds without transaction is then allocated to the security with an
warrants sell for $99. unknown market value.
Based on this information,
Allen should allocate
proceeds of the sale using
the ________ method
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,8/29/25, 6:47 AM ACG 3113 - Final Exam , QUESTIONS WITH ACCURATE ANSWERS | MULTIPLE CHOICES |2025\2026!! Flashcards | Quizlet
Which of the following is A - Corporations issue convertible securities for two
one reason corporations main reasons. One is to raise equity capital without
issue convertible debt? giving up more ownership control than necessary. A
second reason to issue convertibles is to obtain debt
A. They can obtain debt financing at cheaper rates.
financing at lower rates.
B. They can easily sell
convertible debt even if
the company has a poor
credit rating.
C. They can avoid issue
costs associated with
equity capital.
D. They can always sell
convertible bonds at a
premium.
When will the distribution D - To have an increase in paid-in capital, the
of stock rights to existing stockholder would need to exercise their right, and
common stockholders then they would receive cash in excess of par value,
increase paid-in capital? which credits Paid-in Capital in Excess of Par.
Select answer from the
options below:
A - at the date of issuance
of the rights
B - at the date of issuance
of the rights and at the
date of ececise of the
rights.
C - It will never increase
paid-in-capital
D - at the date of exercise
of the rights
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, 8/29/25, 6:47 AM ACG 3113 - Final Exam , QUESTIONS WITH ACCURATE ANSWERS | MULTIPLE CHOICES |2025\2026!! Flashcards | Quizlet
Winter Sports Apparel D - Under GAAP, proceeds from the issuance of
issued convertible debt convertible debt are recorded entirely as debt. The
securities. Which of the entry to record would be a credit to cash and debit to
following statements is bonds payable. When recording the conversion of
true regarding their bonds to common stock, there will always be a debit
journal entries as a result to Bonds Payable and a credit to Common Stock.
of this issuance? Companies need to recognize a gain or loss on
retiring convertible debt in the same way that they
A - They will have a single recognize a gain or loss on retiring nonconvertible
journal entry at issuance debt.
for all securities and
another single entry at
retirement for all securities
in the issue.
B - They will have two
separate journal entries at
issuance, one for the
bonds to be converted
and one for bonds that
will not be converted.
Then they will have a
single entry at conversion
for all bonds to be
converted and another
single entry at retirement
for all securities that were
not converted.
C - They will have a single
journal entry at issuance
for all securities and
another single entry at
conversion for all
securities in the issue.
D - They will have a single
journal entry at issuance
for all securities, separate
entries each time bonds
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ACG 3113 - Final Exam , QUESTIONS WITH
ACCURATE ANSWERS | MULTIPLE CHOICES
|2025\2026!!
Save
Terms in this set (61)
Allen Industries sells proportional - We are given two values of the bonds
20,000 bonds with a par and the detachable warrant. We will opt to use the
value of $500. Each bond proportional method to allocate the proceeds using
comes with a detachable the proportion of the two amounts, based on fair
warrant. Allen knows the values. With the incremental method, the value of the
market price of the lump-sum purchase is first allocated to securities with
warrants is $20 and that known market values. The remaining value of the
similar bonds without transaction is then allocated to the security with an
warrants sell for $99. unknown market value.
Based on this information,
Allen should allocate
proceeds of the sale using
the ________ method
https://quizlet.com/1069552186/acg-3113-final-exam-questions-with-accurate-answers-multiple-choices-20252026-flash-cards/?new 1/24
,8/29/25, 6:47 AM ACG 3113 - Final Exam , QUESTIONS WITH ACCURATE ANSWERS | MULTIPLE CHOICES |2025\2026!! Flashcards | Quizlet
Which of the following is A - Corporations issue convertible securities for two
one reason corporations main reasons. One is to raise equity capital without
issue convertible debt? giving up more ownership control than necessary. A
second reason to issue convertibles is to obtain debt
A. They can obtain debt financing at cheaper rates.
financing at lower rates.
B. They can easily sell
convertible debt even if
the company has a poor
credit rating.
C. They can avoid issue
costs associated with
equity capital.
D. They can always sell
convertible bonds at a
premium.
When will the distribution D - To have an increase in paid-in capital, the
of stock rights to existing stockholder would need to exercise their right, and
common stockholders then they would receive cash in excess of par value,
increase paid-in capital? which credits Paid-in Capital in Excess of Par.
Select answer from the
options below:
A - at the date of issuance
of the rights
B - at the date of issuance
of the rights and at the
date of ececise of the
rights.
C - It will never increase
paid-in-capital
D - at the date of exercise
of the rights
https://quizlet.com/1069552186/acg-3113-final-exam-questions-with-accurate-answers-multiple-choices-20252026-flash-cards/?new 2/24
, 8/29/25, 6:47 AM ACG 3113 - Final Exam , QUESTIONS WITH ACCURATE ANSWERS | MULTIPLE CHOICES |2025\2026!! Flashcards | Quizlet
Winter Sports Apparel D - Under GAAP, proceeds from the issuance of
issued convertible debt convertible debt are recorded entirely as debt. The
securities. Which of the entry to record would be a credit to cash and debit to
following statements is bonds payable. When recording the conversion of
true regarding their bonds to common stock, there will always be a debit
journal entries as a result to Bonds Payable and a credit to Common Stock.
of this issuance? Companies need to recognize a gain or loss on
retiring convertible debt in the same way that they
A - They will have a single recognize a gain or loss on retiring nonconvertible
journal entry at issuance debt.
for all securities and
another single entry at
retirement for all securities
in the issue.
B - They will have two
separate journal entries at
issuance, one for the
bonds to be converted
and one for bonds that
will not be converted.
Then they will have a
single entry at conversion
for all bonds to be
converted and another
single entry at retirement
for all securities that were
not converted.
C - They will have a single
journal entry at issuance
for all securities and
another single entry at
conversion for all
securities in the issue.
D - They will have a single
journal entry at issuance
for all securities, separate
entries each time bonds
https://quizlet.com/1069552186/acg-3113-final-exam-questions-with-accurate-answers-multiple-choices-20252026-flash-cards/?new 3/24
