Author Question: Which of the following is true about bonds and common stock? A) Bonds and common stock are both ... (Read 66 times)

V@ndy87 · **on:** Jul 5, 2018

Which of the following is true about bonds and common stock?

A) Bonds and common stock are both shareholders' equity accounts.
B) The company that has issued bonds and common stock has a legal responsibility to pay back the principal when the bonds and stock mature.
C) The company has a legal responsibility to pay interest and dividends each year.
D) Bondholders do not have voting rights, while common shareholders do.

Question 2

Accompanying the bank statement was a debit memo for an NSF check received from a customer. What entry isrequired in the company's accounts?
a. debit Other Income; credit Cash
b. debit Cash; credit Other Income
c. debit Cash; credit Accounts Receivable
d. debit Accounts Receivable; credit Cash