Harold considers investing in an LM Corp. bond and decides not to purchase the bond. Which of
the following statements is MOST correct?
A) The liquidation value of the bond is greater than the market value of the bond.
B) The intrinsic value of the bond for the investor is greater than the book value of the bond.
C) The intrinsic value of the bond for the investor is less than the market value of the bond.
D) The intrinsic value of the bond for the investor is less than the par value of the bond.
C
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The total number of shares the corporate charter allows a corporation to issue is called authorized stock
a. True b. False Indicate whether the statement is true or false
Actually counting the goods on hand at the end of the accounting period and determining the cost of these goods by reviewing the accounting records is called
a. an adjusting entry; b. a physical inventory; c. cost of goods sold; d. freight-in; e. the closing process.
On September 12, Vander Company sold merchandise in the amount of $8600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5400. Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is:
A.
| Purchases | 5400? | |
| Accounts receivable | 5400? |
B.
| Accounts payable | 5400? | |
| Merchandise inventory | 5400? |
C.
| Merchandise inventory | 8600? | |
| Accounts payable | 8600? |
D.
| Purchases | 8600? | |
| Accounts receivable | 8600? |
E.
| Purchases | 8600? | |
| Accounts payable | 8600? |
The United States v. Lopez case demonstrates which of the following?
a. There are no limitations on the federal government's power pursuant to the Interstate Commerce Clause. b. The states have extensive power to regulate interstate commerce. c. There are limitations on federal power. d. Gun ownership cannot be regulated.