Patents and copyrights are intangible assets.The face interest is the contractua
ID: 2453252 • Letter: P
Question
Patents and copyrights are intangible assets.The face interest is the contractual interest specified on the bondTrue/False
Since each firm is a unique entity, comparison of data for the firm with industry averages is of no use in financial analysis.
Retained earnings do not represent a cash fund.
A separate Common Stock account is kept in the general ledger for each common stockholder of a corporation.
The adjusting entry to record depletion for the period includes a credit to the Depletion Expense account.
The entry to record a subscription for 100 shares of common stock at par value would consist of a debit to Subscriptions Receivable-Common and a credit to Common Stock.
The fair market value of a share of common stock is determined by dividing the stockholders' equity by the number of shares of common stock outstanding.
Preferred Stock is shown in the Stockholders' Equity section of the balance sheet.
A partnership has a limited life. It ends with the death or withdrawal of a partner.
Explanation / Answer
S.no. True/False Reason 1 TRUE Interest is computd on face value of bond 2 FALSE It is useful to get deviations from the actual 3 TRUE It is compisition of the reserves 4 TRUE Separate ledger is maintained 5 FALSE Depletion expense is to be debited 6 FALSE No entry is required on subscription 7 FALSE It is the average of share value under net assets method and dividend per share 8 FALSE It is shown under non-current liabilites section 9 TRUE It has limited life.