Question 1

Notes payable due in six months are reported as:

Accepted Answer

A) a reduction to notes receivable on the balance sheet. 
B) current assets on the balance sheet. 
C) current liabilities on the balance sheet. 
D) long-term liabilities on the balance sheet. 
A) a reduction to notes receivable on the balance sheet. 
B) current assets on the balance sheet. 
C) current liabilities on the balance sheet. 
D) long-term liabilities on the balance sheet.

Question 2

On December 31,2019,Accrued Warranty Payable is reported on the balance sheet for White and Decker Company.The liability pertains to products sold,in 2019,with five-year warranties.The Accrued Warranty Payable should be reported on the balance sheet at December 31,2019 as a:

Accepted Answer

A) part of stockholders' equity. 
B) long-term liability only. 
C) current liability only. 
D) current liability and a long-term liability. 
A) part of stockholders' equity. 
B) long-term liability only. 
C) current liability only. 
D) current liability and a long-term liability.

Question 3

The international accounting standard for loss contingencies:

Accepted Answer

A) contains the same language and requirements as the U.S.standard. 
B) defines the term contingency as a probable obligation that arises from a past event. 
C) states that contingencies can,by definition,only be disclosed in the financial statement footnotes. 
D) never allows a provision to be recorded. 
A) contains the same language and requirements as the U.S.standard. 
B) defines the term contingency as a probable obligation that arises from a past event. 
C) states that contingencies can,by definition,only be disclosed in the financial statement footnotes. 
D) never allows a provision to be recorded.

Question 4

The balance of the Unearned Revenue account becomes zero when a company has earned all of the revenue it had collected in advance.

Accepted Answer

A) True 
 B)False

Question 5

A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense)will occur.

Accepted Answer

A) True 
 B)False

Question 6

Davies Accessories Company entered into the following transactions relating to notes payable:
   Required:
Prepare journal entries to record the above transactions.Also,prepare journal entries needed on December 31,the company's fiscal year end.Omit explanations.

Accepted Answer

The answer of Davies Accessories Company entered into the following...

Question 7

Current liabilities are mostly for:

Accepted Answer

A) operating activities 
B) financing activities. 
C) investing activities. 
D) both A and B. 
A) operating activities 
B) financing activities. 
C) investing activities. 
D) both A and B.

Question 8

Examples of long term debt would include:

Accepted Answer

A) Notes Payable. 
B) Bonds Payable. 
C) Accounts Payable. 
D) A and B. 
A) Notes Payable. 
B) Bonds Payable. 
C) Accounts Payable. 
D) A and B.

Question 9

Most long-term debt agreements are structured to be paid in installments.

Accepted Answer

A) True 
 B)False

Question 10

On December 31st,Baxtor,Inc.has cost of goods sold of $380,000,ending inventory is $12,000,beginning inventory is $28,000;and average accounts payable is $89,000.What is the accounts payable turnover? (Round your answer two decimal places. )

Accepted Answer

A) 4.45 
B) 5.72 
C) 3.82 
D) 4.09 
A) 4.45 
B) 5.72 
C) 3.82 
D) 4.09

Question 11

The most frequently used current liabilities are:

Accepted Answer

A) accounts payable,accounts receivable,and accrued liabilities. 
B) accounts payable,notes payable,and accrued liabilities. 
C) cash,notes payable,and accrued liabilities. 
D) accounts payable,notes payable,and inventories. 
A) accounts payable,accounts receivable,and accrued liabilities. 
B) accounts payable,notes payable,and accrued liabilities. 
C) cash,notes payable,and accrued liabilities. 
D) accounts payable,notes payable,and inventories.

Question 12

Warranties and income taxes are examples of expenses that must be estimated.

Accepted Answer

A) True 
 B)False

Question 13

The following information is available for a retail store for the month of February:
1.Wahlberg Computers sells computers for $2,500 each on account.On February 1,Wahlberg sold 20 computers.The cost of each computer sold was $1,000.The store uses the perpetual inventory system.
2.It is estimated that the warranty expense is 5% of gross sales.A journal entry is prepared February 1.
3.During February,Wahlberg replaced two computers due to product warranty complaints for products purchased in a prior month.
4.A customer fell in the store and is seeking $100,000 in damages.Wahlberg's attorney believes the case is frivolous because the customer has similar lawsuits pending against other retail stores.
5.A customer is suing Wahlberg Computers for $100,000 because the customer's computer purchased from Wahlberg Computers started a fire and destroyed the customer's residence.Wahlberg's attorney believes the customer will probably win the case and receive $100,000.
Required: Prepare the journal entries to record the transactions above.Omit explanations.

Accepted Answer

The answer of The following information is available for a...

Question 14

Montana Company sold merchandise with a retail price of $30,000 for cash.Montana Company is required to collect 8% state sales tax.The total cash received from customers was:

Accepted Answer

A) $2,400. 
B) $27,600. 
C) $30,000. 
D) $32,400. 
A) $2,400. 
B) $27,600. 
C) $30,000. 
D) $32,400.

Question 15

How do you compute the purchases from suppliers:

Accepted Answer

A) Cost of goods sold + ending inventory + beginning inventory. 
B) Cost of goods sold - ending inventory - beginning inventory. 
C) Cost of goods sold + ending inventory - beginning inventory. 
D) Cost of goods sold - ending inventory + beginning inventory. 
A) Cost of goods sold + ending inventory + beginning inventory. 
B) Cost of goods sold - ending inventory - beginning inventory. 
C) Cost of goods sold + ending inventory - beginning inventory. 
D) Cost of goods sold - ending inventory + beginning inventory.

Question 16

Interest expense on a note payable is only recorded at maturity.

Accepted Answer

A) True 
 B)False

Question 17

Which is NOT a current liability?

Accepted Answer

A) unearned revenue 
B) accounts payable 
C) service revenue 
D) accrued liabilities 
A) unearned revenue 
B) accounts payable 
C) service revenue 
D) accrued liabilities

Question 18

On December 31st,Datton,Inc.has cost of goods sold of $550,000,ending inventory is $102,000,beginning inventory is $120,000;and average accounts payable is $114,000.What is the accounts payable turnover? (Round your answer two decimal places. )

Accepted Answer

A) 4.98 
B) 7.77 
C) 4.67 
D) 2.88 
A) 4.98 
B) 7.77 
C) 4.67 
D) 2.88

Question 19

Which of the following liability accounts is usually NOT an accrued liability:

Accepted Answer

A) Warranties Payable. 
B) Wages Payable. 
C) Taxes Payable. 
D) Notes Payable. 
A) Warranties Payable. 
B) Wages Payable. 
C) Taxes Payable. 
D) Notes Payable.

Question 20

The journal entry to accrue salaries earned by employees will debit:

Accepted Answer

A) Salary Expense and credit Salary Payable for net pay. 
B) Salary Expense and credit Salary Payable for gross pay. 
C) Salary Expense for gross pay,credit FICA Tax Payable,credit Employee Income Tax Payable and credit Salary Payable for net pay. 
D) Salary Expense for net pay,debit FICA Tax Payable,debit Employee Income Tax Payable,and credit Salary Payable for gross pay. 
A) Salary Expense and credit Salary Payable for net pay. 
B) Salary Expense and credit Salary Payable for gross pay. 
C) Salary Expense for gross pay,credit FICA Tax Payable,credit Employee Income Tax Payable and credit Salary Payable for net pay. 
D) Salary Expense for net pay,debit FICA Tax Payable,debit Employee Income Tax Payable,and credit Salary Payable for gross pay.

Notes payable due in six months are reported as:

On December 31,2019,Accrued Warranty Payable is reported on the balance sheet for White and Decker Company.The liability pertains to products sold,in 2019,with five-year warranties.The Accrued Warranty Payable should be reported on the balance sheet at December 31,2019 as a:

The international accounting standard for loss contingencies:

The balance of the Unearned Revenue account becomes zero when a company has earned all of the revenue it had collected in advance.

A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense)will occur.

Davies Accessories Company entered into the following transactions relating to notes payable: Required: Prepare journal entries to record the above transactions.Also,prepare journal entries needed on December 31,the company's fiscal year end.Omit explanations.

Current liabilities are mostly for:

Examples of long term debt would include:

Most long-term debt agreements are structured to be paid in installments.

On December 31st,Baxtor,Inc.has cost of goods sold of $380,000,ending inventory is $12,000,beginning inventory is $28,000;and average accounts payable is $89,000.What is the accounts payable turnover? (Round your answer two decimal places. )

The most frequently used current liabilities are:

Warranties and income taxes are examples of expenses that must be estimated.

Montana Company sold merchandise with a retail price of $30,000 for cash.Montana Company is required to collect 8% state sales tax.The total cash received from customers was:

How do you compute the purchases from suppliers:

Interest expense on a note payable is only recorded at maturity.

Which is NOT a current liability?

On December 31st,Datton,Inc.has cost of goods sold of $550,000,ending inventory is $102,000,beginning inventory is $120,000;and average accounts payable is $114,000.What is the accounts payable turnover? (Round your answer two decimal places. )

Which of the following liability accounts is usually NOT an accrued liability:

The journal entry to accrue salaries earned by employees will debit:

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters

Exam 8: Current and Contingent Liabilities

Notes payable due in six months are reported as:

On December 31,2019,Accrued Warranty Payable is reported on the balance sheet for White and Decker Company.The liability pertains to products sold,in 2019,with five-year warranties.The Accrued Warranty Payable should be reported on the balance sheet at December 31,2019 as a:

The international accounting standard for loss contingencies:

The balance of the Unearned Revenue account becomes zero when a company has earned all of the revenue it had collected in advance.

A contingent liability should be disclosed in the notes to the financial statements if there is a reasonable possibility that a loss (or expense)will occur.

Davies Accessories Company entered into the following transactions relating to notes payable: Required: Prepare journal entries to record the above transactions.Also,prepare journal entries needed on December 31,the company's fiscal year end.Omit explanations.

Current liabilities are mostly for:

Examples of long term debt would include:

Most long-term debt agreements are structured to be paid in installments.

On December 31st,Baxtor,Inc.has cost of goods sold of $380,000,ending inventory is $12,000,beginning inventory is $28,000;and average accounts payable is $89,000.What is the accounts payable turnover? (Round your answer two decimal places. )

The most frequently used current liabilities are:

Warranties and income taxes are examples of expenses that must be estimated.

Montana Company sold merchandise with a retail price of $30,000 for cash.Montana Company is required to collect 8% state sales tax.The total cash received from customers was:

How do you compute the purchases from suppliers:

Interest expense on a note payable is only recorded at maturity.

Which is NOT a current liability?

On December 31st,Datton,Inc.has cost of goods sold of $550,000,ending inventory is $102,000,beginning inventory is $120,000;and average accounts payable is $114,000.What is the accounts payable turnover? (Round your answer two decimal places. )

Which of the following liability accounts is usually NOT an accrued liability:

The journal entry to accrue salaries earned by employees will debit:

The Financial Statements

Transaction Analysis

Accrual Accounting Income

Internal Control Cash

Receivables and Revenue

Inventory Cost of Goods Sold

Plant Assets, natural Resources, Intangibles

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Investments

Time Value of Money

Filters