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Accounting

1.The higher the interest rate the lower the present value of a future amount. Why?

2.If a lease is recorded as a capital lease, what is the relationship of the lease payments and the lease liability?

3.Why do companies prefer to classify leases as operating leases rather than as capital leases?

4.If a bond's stated interest rate is below the market interest rate, will the bond sell at premium or at a discount? Why?

5.What are the primary differences between debt financing &equity financing?

6.Are partners legally liable for the actions of other partners? Explain.

7. In what ways are corporate profits subject to double taxation?

8.What is the purpose of having a par value for stock?

9.The dividend payout ratio for Deedle Company is 40%. What does this mean?

10. When a security is sold, what information must be known to account for that transaction?

11.What is the difference between a realized gain or loss and an unrealized gain or loss?

12. How does accounting for changes in the value of trading and available-for-sale securities differ?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91036944

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