The currently maturing portion of long-term debt should be classified as a current liability if the portion so classified will be liquidated within one year using current assets. the debt is to be refinanced on a long-term basis. the debt is to be converted into common stock. funds used to liquidate it are currently cl

The currently maturing portion of long-term debt should be classified as a current liability if the portion so classified will be liquidated within one year using current assets. the debt is to be refinanced on a long-term basis. the debt is to be converted into common stock. funds used to liquidate it are currently cl

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 14E

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When convertible debt is retired by the issuer, any material difference between the cash acquisition price and the carrying amount of the debt should be ________. treated as a prior period adjustment treated as an adjustment of additional paid-in-capital reflected currently in income
Which of the following is a current liability? Select one: A long-term debt maturing currently, which is to be converted into ordinary shares A long-term debt maturing currently, which is to be paid with cash in a sinking fund A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue None of these
Which of the following is a current liability? Select one: O a. A long-term debt maturing currently, which is to be paid with cash in a sinking fund O b. A long-term debt maturing currently, which is to be converted into ordinary shares O c. None of these O d. A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue
The current portion of long-term debt should Select one: a. be reclassified as a current liability. b. be classified as a long-term liability. C. not be separated from the long-term portion of debt. d. be paid immediately.
1. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: How much unrealized gain (loss) is to be reflected in the statement of changes in equity and statement of comprehensive income at yearend 2020? 2. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: What is the carrying value of the investment on December 31, 2020? 3. Assuming the investment is appropriately recognized as a financial asset intended to collect contractual cash flows and also to sell the bonds in open market: Determine the gain or (loss) to be recorded upon the sale of the investment.
How is the premium or discount on debt investments at fair value through profit or loss accounted for? As part of amortized cost and amortized over the life of the bonds. As part of the cost until the disposal of the asset. As expense or revenue in the period the bonds are purchased. All of the above.
If a company invests in the debt instrument of another entity, any premium or discount is: Select one: a. included in other comprehensive income and amortized over the life of the instrument. b. included in the carrying value of the instrument and not amortized. c. amortized as part of interest income over the life of the instrument. d. immediately expensed to income.
Investments in equity securities are adjusted to fair value at the end of the period. This adjustment will affect the income statement, statement of comprehensive income, statement of retained earnings and the balance sheet. (True/False) In accounting for pension plans, the projected benefit obligation, service cost and pension plan assets are all valued at present value. (True/False)
A fixed-income security is defined as. A) a debt obligation that pays a fixed rate of return for a one-year period of time. B) common or preferred stock that pays a fixed annual dividend C) a long-term debt obligation that pays scheduled fixed payments. D) long-term debt issued solely by a federal or state government E) any security originally issued as either debt or equity that pays a fixed, pre-se p et payment
The return on plan assets a.is the change in the fair value of the plan assets during the year. b. includes interest, dividends, and gains or losses from the sale of investments. c. is the actual rate of return times the fair value of the plan assets at the beginning of the period. d. does not include unrealized gains and/or losses on the assets in the plan.
Not-for-profit organizations should report investments in debt securities at which of the following amounts? a. potential proceeds from liquidation sale. b. present value of expected future cash flows. c. historical cost. d. market price.
What adjustment must be made at the end of the period for trading debt investments and available-for-sale debt investments?