ACCT 221: Financial Accounting - Quiz 1

A quiz covering key financial accounting concepts, including fundamental accounting principles and transactions.

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ACCT 221: Financial Accounting-Quiz 1UMUCACCT 221Quiz 11.The date on which a cash dividend becomes a binding legal obligation is onthea.declaration date.b.date of record.c.payment date.d.last day of the fiscal year-end.2.Dividends are predominantly paid ina.earnings.b.property.c.cash.d.stock.3.Solaris, Inc. has 2,000 shares of 5%, $10 par value, cumulative preferredstock and 50,000 shares of $1 par value common stock outstanding atDecember 31, 2014. What is the annual dividend on the preferred stock?a.$5 per shareb.$1,000 in totalc.$10,000 in totald.$.05 per share4.If a corporation issued $3,000,000 in bonds which pay 5% annual interest,what is the annual net cash cost of this borrowing if the income tax rate is30%?a.$3,000,000b.$45,000c.$150,000d.$105,0005.A bond with a face value of $200,000 and a quoted price of 102⅛has aselling price ofa.$240,225.b.$204,025.c.$200,225.d.$204,250.

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University

DeVry University

Course

ACCT 221

Subject

Accounting

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