8. How should notes payable secured by real estate mortgage be shown on the balance sheet?
9. How would you treat the securities pledged as collateral for a bond or note issue?
10. What are short-term securities and under what conditions are they issued?
Chapter XXI
1. What problem is involved in the valuation of capital stock?
2. Define the different kinds of value of stocks.
3. What is watered stock? Illustrate.
4. What is the objection to earning capacity as the basis of capitalization?
5. What attitude does the law take towards capitalization?
6. How would you treat stock discount and premium on the books? On the balance sheet?