Question 1

Lippman Company Ltd. collects 5% GST on sales. If sales are $963,000, the proper accounting includes:

Accepted Answer

A) $101,115 credit to Sales. 
B) $48,150 credit to GST Payable. 
C) $48,150 debit to GST Recoverable. 
D) $963,000 debit to Accounts Receivable. 
A) $101,115 credit to Sales. 
B) $48,150 credit to GST Payable. 
C) $48,150 debit to GST Recoverable. 
D) $963,000 debit to Accounts Receivable.

Question 2

Interest must be accrued on all current notes payable. For long-term notes the interest is accrued at the maturity of the note.

Accepted Answer

A) True 
 B)False

Question 3

Warranty expense is debited in the period that:

Accepted Answer

A) the product is repaired. 
B) the product is sold. 
C) the cash is collected from the customer. 
D) either the product is sold or the cash is collected. 
A) the product is repaired. 
B) the product is sold. 
C) the cash is collected from the customer. 
D) either the product is sold or the cash is collected.

Question 4

A company borrows $5,000 on November 1, 2019, giving a 10%, 180-day note payable. The adjusting entry on December 31, 2019, would include a:

Accepted Answer

A) credit to Interest Payable for $82.19. 
B) credit to Interest Payable for $123.29. 
C) credit to Interest Expense for $82.19. 
D) credit to Cash for $82.19. 
A) credit to Interest Payable for $82.19. 
B) credit to Interest Payable for $123.29. 
C) credit to Interest Expense for $82.19. 
D) credit to Cash for $82.19.

Question 5

The law requires all employers to provide paid vacations to their employees.

Accepted Answer

A) True 
 B)False

Question 6

In provinces with PST, businesses must pay the tax when they are the final consumer of the goods.

Accepted Answer

A) True 
 B)False

Question 7

Sales tax payable is recorded as a debit when recording a sale of merchandise.

Accepted Answer

A) True 
 B)False

Question 8

A company gives a $100,000, 120-day note at the bank at 9%. How much will the company pay the bank at maturity?

Accepted Answer

A) $102,958.90 
B) $97,041.10 
C) $98,520.55 
D) $101,479.45 
A) $102,958.90 
B) $97,041.10 
C) $98,520.55 
D) $101,479.45

Question 9

A contingent liability is a potential liability that depends on a future event arising out of a past transaction.

Accepted Answer

A) True 
 B)False

Question 10

A $15,000, 8%, 9-month note payable requires an interest payment of $900 at maturity, if no interest was previously paid.

Accepted Answer

A) True 
 B)False

Lippman Company Ltd. collects 5% GST on sales. If sales are $963,000, the proper accounting includes:

Interest must be accrued on all current notes payable. For long-term notes the interest is accrued at the maturity of the note.

Warranty expense is debited in the period that:

A company borrows $5,000 on November 1, 2019, giving a 10%, 180-day note payable. The adjusting entry on December 31, 2019, would include a:

The law requires all employers to provide paid vacations to their employees.

In provinces with PST, businesses must pay the tax when they are the final consumer of the goods.

Sales tax payable is recorded as a debit when recording a sale of merchandise.

A company gives a $100,000, 120-day note at the bank at 9%. How much will the company pay the bank at maturity?

A contingent liability is a potential liability that depends on a future event arising out of a past transaction.

A $15,000, 8%, 9-month note payable requires an interest payment of $900 at maturity, if no interest was previously paid.

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Filters

Exam 11: Current Liabilities and Payroll

Lippman Company Ltd. collects 5% GST on sales. If sales are $963,000, the proper accounting includes:

Interest must be accrued on all current notes payable. For long-term notes the interest is accrued at the maturity of the note.

Warranty expense is debited in the period that:

A company borrows $5,000 on November 1, 2019, giving a 10%, 180-day note payable. The adjusting entry on December 31, 2019, would include a:

The law requires all employers to provide paid vacations to their employees.

In provinces with PST, businesses must pay the tax when they are the final consumer of the goods.

Sales tax payable is recorded as a debit when recording a sale of merchandise.

A company gives a $100,000, 120-day note at the bank at 9%. How much will the company pay the bank at maturity?

A contingent liability is a potential liability that depends on a future event arising out of a past transaction.

A $15,000, 8%, 9-month note payable requires an interest payment of $900 at maturity, if no interest was previously paid.

Accounting and the Business Environment

Recording Business Transactions

Measuring Business Income: The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations and the Accounting Cycle

Accounting for Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Property, Plant, and Equipment; Goodwill; and Intangibles

Filters