When the conversion of bonds payable to common stock is recorded under the book value method and the par value of the common stock exceeds the book value of the bonds, the difference is recorded as a
A) debit to Retained Earnings.
B) debit to Loss on Conversion.
C) debit to Additional Paid-in Capital?Common Stock.
D) debit to Discount on Bonds Payable.
A
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The calculation of Economic Value Added is:
A) margin minus total annual cost of capital. B) operating income minus average cost of capital. C) operating income minus total annual cost of capital. D) operating income minus taxes and the total annual cost of capital.
If it is not possible to increase capacity, then ______.
A. the master schedule needs to be revised B. marketing efforts need to be reduced C. prices have to be increased (so less product will be demanded) D. a new facility will have to be built to meet the demand
Which of the following situations would be covered under the liability section of the PAP?
I. A mechanic is sued by a pedestrian who is injured when the mechanic has an accident while road testing the insured's auto. II. The daughter of the named insured is sued after she has an accident when a new friend she just met at a campus hangout lets her drive his car. A) I only B) II only C) both I and II D) neither I nor II
Section 11 of the 1933 Securities Act imposes civil liability for:
a. misleading statements in securities registration material b. poorly run businesses c. unsuccessful investment schemes d. late registration of securities e. unreasonable risk in investment