Accountıng Iı

Yanıt Açıklaması: A bond is the most common type of long-term debt.

Yanıt Açıklaması: Each bondholder receives a bond certificate showing the name of the company that borrowed the money, exactly like a note payable. The certificate specifies the face value, which is the amount of the bond issue.

Yanıt Açıklaması: Amortization of a discount increases bond interest expense, amortization of a premium decreases bond interest expense. The correct answer is B.

Yanıt Açıklaması: The correct answer is B. Liabilities reported on the balance sheet.

Yanıt Açıklaması: Present Value of the Principal 10,000 TL x 0.71178 (Appendix A, Table 1, n: 3, i: 12%) 7,118 TL Present Value of the Interest Payments 1,000 TL x 2.40183 (Appendix A, Table 2, n: 3, i: 12%) 2,402 TL Present value (selling price) of the bonds 9,520 TL First year interest expense is 9,520 TL x 12% = 1,142 TL The correct answer is E.

Yanıt Açıklaması: Proprietorship is an entity owned by a single owner.

Yanıt Açıklaması: The second popular way to distributing dividends to the shareholders is to share dividends. In this case, the distributed item is different than cash dividends. Share dividend is a distribution of a corporation’s own shares to the shareholders as dividend. The correct answer is C.

Yanıt Açıklaması: The correct answer is question E.

Yanıt Açıklaması: In very rare cases, shares might be issued below par value. If this seldom transaction occurs, another separate account entitled “Discount on Capital Share” should be debited. The correct answer is A.

Yanıt Açıklaması: Types of bond issues are (1) secured and unsecured bonds; (2) term, serial and callable bonds; (3) registered and bearer bonds; (4) income and revenue bonds.

Yanıt Açıklaması: A Comprehensive income is all changes in the shareholders’ equity from all sources except owners’ investments and dividends. The correct answer is C.

Yanıt Açıklaması: The bond indenture is a contract or loan agreement under which the bonds are issued. The correct answer is B.

Yanıt Açıklaması: A long-term note is a promissory note that represents a loan from a bank or other creditor. Long-term notes payable is similar to short-term notes payable except that the term of the notes exceeds one year. The basic difference between short term notes payable and long-term notes payable is the maturity date. As we have already mentioned before long term liabilities consist of an expected outflow of resources arising from present obligations that are not payable within a year or the operating cycle of the company whichever is longer. Long-term notes payable is typically reported in the long-term liabilities section of the balance sheet. The correct answer is B.

Yanıt Açıklaması: Cost of Share: Purchase price (5,000 shares x 2.00 TL) + Other Purchase related Fees (350 TL). Therefore, Debit: Available for Sale Securities (Common Stock) - 10,350 Credit: Cash - 10,350 The correct answer is E.

Yanıt Açıklaması: Present Value of the Principal 100,000 TL x 0.61391 (Appendix A, Table 1, n: 10, i: 5%) 61,391 TL Present Value of the Interest Payments 4,000 TL x 7.72173 (Appendix A, Table 2, n: 10, i: 5%) 30,887 TL Present value (selling price) of the bonds 92,278 TL The correct answer is C.

Yanıt Açıklaması: In order to finance and expand their operations companies need funds. Although some of the necessary funding can be provided by their own operations, companies usually have to raise some of the funds from external sources. Therefore, these companies are required to obtain longterm financing from banks and other financial institutions and we call this process as “external financing”. The correct answer is E.

Yanıt Açıklaması: Bonds which pay interest from specified revenue sources are called “revenue bonds”.

Yanıt Açıklaması: Held-to-maturity securities are recorded using the amortized cost instead of fair values. Therefore, there is no holding gain or loss to recognize in financial statements. The correct answer is D.

Yanıt Açıklaması: Statement of shareholders’ equity is a financial report that represents the details about the changes in shareholders’ equity for a period of time. The correct answer is B.

Yanıt Açıklaması: The distributions from the earnings to the shareholders is named as dividends.