Which of the Following Accounts Would Appear on the Financial

question 126

Multiple Choice

Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?

• A)materials inventory
• B)bonds payable
• C)prepaid insurance
• D)retained earnings

Recognize bond-related terminology and the significance of bond indenture documents.

Understand how bond premiums and discounts affect the selling price and interest expense.

Know how different financing plans affect a corporation's net income and earnings per share.

Understand journal entry preparation for bond transactions, including issuance, interest payment, and amortization.

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Definitions:

U.S. Dollars

The official currency of the United States, commonly used as a basis for financial transactions and accounting records.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and manufacturing overhead expenses.

Historical Rate

A reference to the exchange rate used in the past for converting one currency to another at a specific time.

Restated

Refers to financial statements that have been revised from their original figures to correct errors or account for retrospective changes in accounting policy.