ACCT 4A SI 4/22 Warm-Up

This equation shows the relationship between total liabilities and total equity.

• Current Ratio

• Debt-to-Equity Ratio

• Debt Ratio

• Acid-Test Ratio

_________ details each loan payment's allocation between principal and interest and the balance of the loan.

• Mortgages Payable

• Long-Term Notes Payable

• Amortization Schedule

• Bonds Payable

These are backed by a security interest in a property.

• Long-Term Notes Payable

• Mortgages Payable

• Accounts Payable

• Interest Payable

These are long-term debts issued to multiple lenders called bondholders

• Long-Term Notes Payable

• Short-Term Notes Payable

• Bonds Payable

• Mortgages Payable

A discount on bonds payable is _____________.

• issued at a price less than face value

• issued at a price more than face value

• issued at a pice equal to face value

• issued at discounted interest rate

The carrying amount of bonds __________.

• is the bonds payable minus the discount

• is the discount minus the bonds payable

• The principal amount plus the interest

• The principal minus the interest

Premium on Bonds Payable is a _______ to Bonds Payable

• Contra Account

• Adjunct Account

• Liability Account

• Asset Account

Calculate the total payment for the amortization schedule for the first year with the following information: $10,000 beginning balance, $1,000 annual payment at 4% interest rate.

When a company issues bonds at face value, in the journalizing entry what is the debit account?

• Bonds Payable

• Cash

• Accounts Receivable

• Bonds Interest

Explain Market Interest Rate in your own words: