Balance Sheet and Income Statement Data Indicate the Following: Bonds

question 93

Multiple Choice

Balance sheet and income statement data indicate the following: Bonds payable, 6% this is year 4 of 20 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
340,000
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) 5.72
• B) 6.83
• C) 4.72
• D) 4.83

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Definitions:

Blank Slates

A theory suggesting that individuals are born without built-in mental content and that all knowledge comes from experience or perception.

Information-Processing Theory

A cognitive psychology theory that uses a computer metaphor to explain how human mind processes information, including stages of encoding, storage, and retrieval.

Cognitive Development

The process by which individuals acquire and evolve their abilities in thinking, reasoning, and understanding throughout their lives.

Occurs Daily

Events or actions that happen or are performed every single day.