Balance Sheet and Income Statement Data Indicate the Following: Bonds

question 38

Multiple Choice

Balance sheet and income statement data indicate the following: Bonds payable, 6% due in 15 years) Preferred 8% stock, $100 par no change during the year) $1,200,000
200,000
Common stock, $50 par
No change during the year) 1,000,000
Income before income tax for year
320,000
Income tax for year
80,000
Common dividends paid
60,000
Preferred dividends paid
16,000
Based on the data presented above, what is the number of times bond interest charges were earned round to two decimal places) ?

• A) 5.00
• B) 5.44
• C) 4.00
• D) 4.33

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Definitions:

Face Perception

The classification and recognition of stimuli that are faces.

Gestalt Psychology

A school of psychology emphasizing the study of whole entities rather than simple elements. Gestalt psychologists concentrate on problems of perception and problem solving, and they argue that people’s cognitive experience is reducible not to their experience of simple elements (e.g., sensations) but rather to the overall structure(s) of their experience.

Featural Analysis

A process where visual stimuli are broken down into constituent features for recognition, such as shape, color, and line orientation.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen in mammals, playing a major role in breathing by contracting and flattening to enlarge the thoracic cavity.