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Ch 15 - Ch16 Acct 2

Accounting 2 Chapter 15 - Chapter 16

QuestionAnswer
What are three advantages of common stock? (1)Stockholder control is not affected(2)Tax savings result(3)Earnings per share may be higher
What is a major disadvantage of the use of bonds? Interest must be paid and principle repaid.
What are some types of bonds? (a)Secured and Unsecured(debenture) bonds(b)Term and serial bonds(c)Registered and bearer(or coupon) bonds(d)Convertible and callable bonds
What is the rate of interest investors demand for loaning funds to a corporation? Market interest rate
What is the discount on bonds payable? A contra account
Created by: Geeked_Up
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