Which of the following describes the characteristics of a convertible bond?
A. Bonds mature at specified intervals throughout the life of the total issuance.
B. Bonds mature on a specified date in the future.
C. Bonds may be exchanged for stock at the discretion of the issuer.
D. Bonds may be exchanged for stock at the discretion of the bondholder.
Answer: D
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The VALS2™ group that has the highest degree of resources and innovation is termed the ________. This group is concerned with social issues and is open to change
A) Believers B) Strugglers C) Innovators D) Makers
When bonds are converted to stock, no gain or loss is recognized
Indicate whether the statement is true or false
The term incremental cost refers to
a. the difference in total costs between alternatives. b. a cost that does not entail any dollar outlay but that is relevant to the decision-making process. c. the profit forgone by selecting one choice instead of another. d. a cost that constitutes expenses to be incurred even though there is no activity.
On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system and the gross method of accounting for sales. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is:
A.
| Cash | 4,000 | |
| Accounts receivable | 4,000 |
B.
| Cash | 5,684 | |
| Accounts receivable | 5,684 |
C.
| Cash | 3,920 | |
| Sales discounts | 80 | |
| Accounts receivable | 4,000 |
D.
| Cash | 5,800 | |
| Accounts receivable | 5,800 |
E.
| Cash | 5,684 | |
| Sales discounts | 116 | |
| Accounts receivable | 5,800 |