Common stockholders expect greater returns than bondholders because
A) they have no legal right to receive dividends.
B) they bear greater risk.
C) in the event of liquidation, they are only entitled to receive any cash that is left after all creditors are paid.
D) all of the above.
Answer: D
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Kotan Company signed a three-month, 8% note on November 1, 2013 for the purchase of $60,000 of inventory. Assuming the company's accounting period ends on December 31, which one of the following statements is not correct?
A. On February 1, 2014, the company will debit Interest Expense for $800 B. On December 31, 2013, the company will credit Interest Payable for $800 C. On December 31, 2013, the company will debit Interest Expense for $800 D. On February 1, 2014, the company will debit Interest Payable for $800
A doctor's incorporated medical practice, generally, need not have a business purpose for using a tax year that does not end on December 31.
a. true b. false