On January 2, 2010 , Lester Company, a Calendar-Year Company

question 22

Multiple Choice

On January 2, 2010 , Lester Company, a calendar-year company, issued $40,000 of notes payable, of which $10,000 is due on January 2 for each of the next four years. The proper balance sheet presentation on December 31, 2010 7, is

• A) Current Liabilities, $40,000.
• B) Current Liabilities, $10,000; Long-Term Liabilities, $30,000.
• C) Long-Term Liabilities, $40,000.
• D) Current Liabilities, $30,000; Long-Term Liabilities, $10,000.

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Definitions:

Pace

The speed or rate at which something happens, often used to measure progress or activity levels.

Strip Bonds

Fixed-income securities that are derived from separating the principal and interest payments of a bond, which are then sold as individual zero-coupon bonds.

RRSP

The Registered Retirement Savings Plan is a financial tool for Canadian workers and self-employed persons, facilitating savings and investments for retirement.

Yield

The return in terms of income from an investment, like dividends or interest earned by possessing a specific security.