Accountıng Iı

Yanıt Açıklaması: The method used for amortization of a discount or premium is called effective interest method.

Yanıt Açıklaması: If a corporation wants to pay cash dividends, three conditions required are as follows: 1. Sufficient retained earnings 2. Adequate cash 3. Declared dividends by the board of directors The correct answer is E.

Yanıt Açıklaması: In order to assess the company from these perspectives, investors and creditors generally imply ratio analysis, as well as other financial statement analysis methods. Ratios, which are calculated by dividing a financial statement item with another, help users with analyzing the company from different perspectives. Ratios (such as current ratio, acid-test ratio, operating cash flows ratio, net working capital ratio, interest coverage ratio) represent the riskiness and creditworthiness of companies to investors and creditors.Ratios represent the relationships between financial statement items to make it possible to assess the financial position and performance of companies. The correct answer is E.

Yanıt Açıklaması: A cumulative preferred share is a preferred share that can also receive all dividends in arrears while receiving a new preferred dividend.

Yanıt Açıklaması: The main purpose of issuing bonds is to borrow for the long term when the amount of capital needed is too large for one lender to supply.

Yanıt Açıklaması: Shareholders’ rights in corporations are vote, dividend, liquidation preemption and receiving information.

Yanıt Açıklaması: The correct answer is B. Accounts payable arise from purchasing goods or services for use in a company’s operations. Amounts owed for goods or services purchased on account are accounts payable. Accounts payable are debts incurred in the normal course of a business, resulting from acquisition of inventories and supplies.

Yanıt Açıklaması: In the statement of cash flows, there are three basic types of cash flow activities. These activities have a separate section which reports cash inflows and cash outflows in the statement of cash flows. These activities are: • Operating activities • Investing activities • Financing activities

Yanıt Açıklaması: If a corporation wants to pay cash dividends, three conditions required are as follows: 1. Sufficient retained earnings 2. Adequate cash 3. Declared dividends by the board of directors

Yanıt Açıklaması: A secured bond is a bond for which a company has pledged specific property to ensure its payment.

Yanıt Açıklaması: Life of a corporation is indefinite but life of sole proprietorship and partnership ends with death or choice of proprietor.

Yanıt Açıklaması: Financing activities are the activities that increase or decrease long term liabilities and equity. So in the cash flow statement, financing activities include cash inflows and outflows involved in long term liabilities and equity such as issuing shares, paying dividends and buying and selling treasury shares, borrowing money and paying off long term liabilities such as notes payable, bonds payable. The correct answer is B.

Yanıt Açıklaması: The term carrying value is synonymous with book value.

Yanıt Açıklaması: The correct answer to question is option A. Influential but noncontrolling and controlling are long term  investments.

Yanıt Açıklaması: Retained earnings account’s credit balance indicates that the corporation’s lifetime earnings exceed lifetime losses and dividends. 1.000.000 - 200.000 - 700.000 = 100.000

Yanıt Açıklaması: Bonds issued in the name of the owner are called “registered bonds” and require surrender of the certificate and issuance of a new certificate to complete a sale. Bonds not recorded in the name of the owner are called “bearer (coupon) bonds” and they can be transferred from one owner to another by mere delivery. The correct answer is A.

Yanıt Açıklaması: The carrying value is the face amount minus any unamortized discount or plus any unamortized premium.

Yanıt Açıklaması: Treasury share may be resold above cost. In this case, there will be a difference between the cost and the sale price of the treasury share. If the sale price is higher than the cost of treasury share, this positive difference should be recorded in a new shareholders’ equity account named “Paid-in Capital from Treasury Share”. Paid-in Capital from Treasury Share is reported in the Paid-in Capital section of a corporation’s balance sheet. The correct answer is B.

Yanıt Açıklaması: Equity is the “owners’ claims in business”. The correct answer is B.

Yanıt Açıklaması: In compliance with accounting perspective, types of entities are based on their ownership, taxation, life, the personal liability of the owners particularly.