Question 1

Contingent liabilities occur when the liability is:

Accepted Answer

A)  Probable and can be reliably estimated. 
B)  Cannot be reliably estimated. 
C)  Known and determinable. 
D)  Reliably estimated. 
E)  All of these answers are correct. 
A)  Probable and can be reliably estimated. 
B)  Cannot be reliably estimated. 
C)  Known and determinable. 
D)  Reliably estimated. 
E)  All of these answers are correct.

Question 2

Uncertainties such as doubtful accounts:

Accepted Answer

A)  Are not provisions because they are future events not arising out of past transactions. 
B)  Are provisions because they are future events arising from past transactions. 
C)  Should not be disclosed. 
D)  Are provisions because the amounts are uncertain. 
E)  Are not provisions since they relate to normal business activities. 
A)  Are not provisions because they are future events not arising out of past transactions. 
B)  Are provisions because they are future events arising from past transactions. 
C)  Should not be disclosed. 
D)  Are provisions because the amounts are uncertain. 
E)  Are not provisions since they relate to normal business activities.

Question 3

Unearned revenues are amounts received _______________.

Accepted Answer

In advance from cust

Question 4

Discuss the types of estimated liabilities.

Accepted Answer

Estimated liabilities are known obligati

Question 5

Explain known current liabilities.

Accepted Answer

Known current liabilities are determined

Question 6

Obligations not expected to be paid within one year are reported as:

Accepted Answer

A)  Current assets. 
B)  Current liabilities. 
C)  Long term liabilities. 
D)  Operating cycle liabilities. 
E)  Revenues. 
A)  Current assets. 
B)  Current liabilities. 
C)  Long term liabilities. 
D)  Operating cycle liabilities. 
E)  Revenues.

Question 7

Unearned revenue is another name for sales revenue.

Accepted Answer

A) True 
 B)False

Question 8

A short-term note payable:

Accepted Answer

A)  Is a written promise to pay a specified amount. 
B)  Is a contingent liability. 
C)  Is an estimated liability. 
D)  Is not recorded until it is repaid. 
E)  Usually does not bear interest. 
A)  Is a written promise to pay a specified amount. 
B)  Is a contingent liability. 
C)  Is an estimated liability. 
D)  Is not recorded until it is repaid. 
E)  Usually does not bear interest.

Question 9

Recording provisions is required when it is probable that the liability will occur and the amount can be reasonably estimated.

Accepted Answer

A) True 
 B)False

Question 10

_______________ are obligations expected to be paid using current assets or by creating other current liabilities.

Accepted Answer

The answer of _______________ are obligations expected to be paid...

Question 11

Promissory notes:

Accepted Answer

A)  Are negotiable. 
B)  Can be transferred from party to party by endorsement. 
C)  Are due on a specific date. 
D)  Can be current or long term. 
E)  All of these answers are correct. 
A)  Are negotiable. 
B)  Can be transferred from party to party by endorsement. 
C)  Are due on a specific date. 
D)  Can be current or long term. 
E)  All of these answers are correct.

Question 12

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31.
Prepare the journal entry to record the receipt of the cash.

Accepted Answer

The answer of On November 16,Predator Company borrowed $112,000 from...

Question 13

Unearned revenue is initially recognized with a:

Accepted Answer

A)  Credit to revenue payable. 
B)  Credit to revenue. 
C)  Credit to unearned revenue. 
D)  Debit to revenue. 
E)  Debit to unearned revenuE. 
A)  Credit to revenue payable. 
B)  Credit to revenue. 
C)  Credit to unearned revenue. 
D)  Debit to revenue. 
E)  Debit to unearned revenuE.

Question 14

On June 14,Cool Sports gave a 90-day note payable to Quick Skis,instead of cash payment of an overdue account.The amount of the note was $85,000 at an interest rate of 12%.
Prepare the journal entry on Cool Sports books to record the note payable.

Accepted Answer

The answer of On June 14,Cool Sports gave a 90-day...

Question 15

Honest Computers sells computers with a 6-month warranty.In January,the company sold 35,000 computers at $2,600 each and 1,500 computers were returned for repairs.The total repair costs amounted to $185,000.It is estimated that 3% of all units sold will need repairs under warranty at an estimated cost of $300 per unit.Prepare the journal entry to record warranty expense for January.

Accepted Answer

The answer of Honest Computers sells computers with a 6-month...

Question 16

Known liabilities are agreements,contracts,or laws that are measurable and have little uncertainty.

Accepted Answer

A) True 
 B)False

Question 17

Obligations due to be paid within one year or the company's operating cycle,whichever is longer,are:

Accepted Answer

A)  Current assets. 
B)  Revenues. 
C)  Current liabilities. 
D)  Operating cycle liabilities. 
E)  Long term liabilities. 
A)  Current assets. 
B)  Revenues. 
C)  Current liabilities. 
D)  Operating cycle liabilities. 
E)  Long term liabilities.

Question 18

Kirland performed warranty repair work for a customer which cost $800.The journal entry to record the work should be a debit of $800 to Warranty Expense and a $800 credit to Estimated Warranty Liability.

Accepted Answer

A) True 
 B)False

Question 19

Classify each of the following items as either:
1.Long-term liability.
2.Current liability.
3.Not a liability
30-day promissory note
Car payments on a 4-year loan due this year
Salaries payable
Bonds payable
Employee deductions
Income taxes payable
Mortgage payments on a 30-year loan due this year
Mortgage payments on a 30-year loan due next year
Warranty work completed this year
Accounts payable

Accepted Answer

30-day promissory note 2 Car payments on

Question 20

Goods and Services Tax (GST)is not paid by a wholesaler.

Accepted Answer

A) True 
 B)False

Contingent liabilities occur when the liability is:

Uncertainties such as doubtful accounts:

Unearned revenues are amounts received _______________.

Discuss the types of estimated liabilities.

Explain known current liabilities.

Obligations not expected to be paid within one year are reported as:

Unearned revenue is another name for sales revenue.

A short-term note payable:

Recording provisions is required when it is probable that the liability will occur and the amount can be reasonably estimated.

_______________ are obligations expected to be paid using current assets or by creating other current liabilities.

Promissory notes:

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the receipt of the cash.

Unearned revenue is initially recognized with a:

On June 14,Cool Sports gave a 90-day note payable to Quick Skis,instead of cash payment of an overdue account.The amount of the note was $85,000 at an interest rate of 12%. Prepare the journal entry on Cool Sports books to record the note payable.

Known liabilities are agreements,contracts,or laws that are measurable and have little uncertainty.

Obligations due to be paid within one year or the company's operating cycle,whichever is longer,are:

Kirland performed warranty repair work for a customer which cost $800.The journal entry to record the work should be a debit of $800 to Warranty Expense and a $800 credit to Estimated Warranty Liability.

Goods and Services Tax (GST)is not paid by a wholesaler.

Property,plant and Equipment,and Intangibles

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

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Exam 11: Current Liabilities

Contingent liabilities occur when the liability is:

Uncertainties such as doubtful accounts:

Unearned revenues are amounts received _______________.

Discuss the types of estimated liabilities.

Explain known current liabilities.

Obligations not expected to be paid within one year are reported as:

Unearned revenue is another name for sales revenue.

A short-term note payable:

Recording provisions is required when it is probable that the liability will occur and the amount can be reasonably estimated.

_______________ are obligations expected to be paid using current assets or by creating other current liabilities.

Promissory notes:

On November 16,Predator Company borrowed $112,000 from DT Bank.The loan had an interest rate of 10% and was due in 90 days.Predator Company's fiscal year-end is December 31. Prepare the journal entry to record the receipt of the cash.

Unearned revenue is initially recognized with a:

On June 14,Cool Sports gave a 90-day note payable to Quick Skis,instead of cash payment of an overdue account.The amount of the note was $85,000 at an interest rate of 12%. Prepare the journal entry on Cool Sports books to record the note payable.

Known liabilities are agreements,contracts,or laws that are measurable and have little uncertainty.

Obligations due to be paid within one year or the company's operating cycle,whichever is longer,are:

Kirland performed warranty repair work for a customer which cost $800.The journal entry to record the work should be a debit of $800 to Warranty Expense and a $800 credit to Estimated Warranty Liability.

Goods and Services Tax (GST)is not paid by a wholesaler.

Property,plant and Equipment,and Intangibles

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters