MGMT 20000 Study Guide - Final Guide: Interest Expense, Debenture, Common Stock

• School: Purdue University
• Department: Management
• Course: MGMT 20000
• Professor: Frank Kane

Document Summary

Addition to long-term liability: unamortized bond premium is not subtracted from bonds payable, interest expense = carrying value * market interest rate, bonds payable should be reported as long-term liability in balance sheet at. Chapter 12: vertical analysis comparing income statement items as a percentage of sales, in common-size financial statement, 25% could not be given to . Net revenues: in horizontal analysis, the base year is not the most current year being examined, example of horizontal analysis . A higher current ratio may indicate inefficient use of various assets and liabilities: profit margin of a business cannot be higher than its gross margin, profit margin = net income/ net sales. Articles of incorporation & by-laws: board of directors appoints the ceo, ceo appoints other corporate officers. True, large stock dividend reduces r/e by the par value of stock: stock dividend requires an entry in accounting records, because.