Balance Sheet and Income Statement Data Indicate the Following: Bonds

question 11

Multiple Choice

Balance sheet and income statement data indicate the following: Bonds payable, 10% due in two years) $1,000,000
Preferred 5% stock, $100 par no change during year) 300,000
Common stock, $50 par no change during year) 2,000,000
Income before income tax for year
550,000
Income tax for year
80,000
Common dividends paid
50,000
Preferred dividends paid
15,000
Based on the data presented above, what is the number of times bond interest charges were earned round to one decimal point) ?

• A) 1.5
• B) 6.4
• C) 6.5
• D) 5.5

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Definitions:

Strange Situation

A procedure developed to measure the quality of attachment between young children and their caregivers by observing their responses to a series of separations and reunions.

Unfamiliar Situation

A scenario or environment that is not known or recognized, often leading to feelings of discomfort, anxiety, or curiosity.

Attachment Theory

A psychological model that explains the dynamics of long-term interpersonal relationships between humans, starting from infancy.

John Bowlby

A British psychologist known for his work in the development of attachment theory, which emphasizes the importance of secure emotional bonds between children and their caregivers.