Question 1

Estimated liabilities are also referred to as provisions.

Accepted Answer

A) True 
 B)False  True

Question 2

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  False

Question 3

The receipt of $6,000 in advance ticket sales would be recorded as

Accepted Answer

A) debit Cash,credit Unearned Revenue. 
B) debit Unearned Revenue,credit Sales. 
C) debit Sales,credit Unearned Revenue. 
D) debit Unearned Revenue,credit Cash. 
E) debit Cash,credit Revenue Payable. 
A) debit Cash,credit Unearned Revenue. 
B) debit Unearned Revenue,credit Sales. 
C) debit Sales,credit Unearned Revenue. 
D) debit Unearned Revenue,credit Cash. 
E) debit Cash,credit Revenue Payable. A

Question 4

The difference between the amount received from a note payable and the amount repaid is

Accepted Answer

A) interest. 
B) principal. 
C) face value. 
D) discount. 
E) premium. 
A) interest. 
B) principal. 
C) face value. 
D) discount. 
E) premium.

Question 5

Long-term liabilities

Accepted Answer

A) are liabilities arising from future events. 
B) are sometimes reported on the income statement. 
C) are obligations requiring payment within one year or less. 
D) are not recorded until they are paid. 
E) are obligations of a company not requiring payment within one year. 
A) are liabilities arising from future events. 
B) are sometimes reported on the income statement. 
C) are obligations requiring payment within one year or less. 
D) are not recorded until they are paid. 
E) are obligations of a company not requiring payment within one year.

Question 6

A company sells its product subject to a warranty that covers the cost of parts and labour for repairs during the six months after sale.warranty costs are estimated to be 3.5% of sales for parts,and 1.5% of sales for labour.During the month of June,the company performed warranty work and used $8,000 worth of parts and paid $4,000 in wages for labour to do the warranty work.Sales for June amounted to $450,000.
(1)What account should be debited for the $4,000 in labour?
(2)What should be the amount of estimated warranty expense for June?
(3)If the Estimated Warranty Liability account had a $10,000 credit balance on May 31,what should be the account balance as of June 30?

Accepted Answer

(1)Estimated Warranty Liabilit

Question 7

During November 2021,Sunset Airlines sold out all of its eight flights going from Toronto to Cuba.Two flights depart in December 2021 and six flights depart in January 2022.Sunset collected $1,960,000 in November 2021 for the flights.Sunset's year end is December 31
Required: What adjusting entry would be needed to recognize revenue for 2021? Date the entry.What would be the value of the liability on Sunset's Balance Sheet at December 31,2021? State if the liability is current or non-current.

Accepted Answer

a) @#IMG-DLM& Curren

Question 8

Sales taxes payable is credited,and cash is debited when firms send sales taxes collected from customers to the government.

Accepted Answer

A) True 
 B)False

Question 9

Accounts payable

Accepted Answer

A) have specific due dates. 
B) are long-term liabilities. 
C) are estimated liabilities. 
D) are amounts owed to suppliers for products and services purchased on credit. 
E) all of these. 
A) have specific due dates. 
B) are long-term liabilities. 
C) are estimated liabilities. 
D) are amounts owed to suppliers for products and services purchased on credit. 
E) all of these.

Question 10

On November 16,2020,Kinsmen Sports gave Source for Sports a 120-day,8%,$130,000 note payable to extend a past due account payable.What amount of interest expense should Source for Sports report for calendar 2020?

Accepted Answer

$1,282.19

Question 11

Trade accounts payable are amounts owed to suppliers for products or services purchased on credit.

Accepted Answer

A) True 
 B)False

Question 12

Gross pay is the same as net pay.

Accepted Answer

A) True 
 B)False

Question 13

On June 5,Scavenger Company borrowed $125,000 from BC Bank.The loan had an interest rate of 10% and was due in 90 days.Scavenger Company's fiscal year-end is December 31.Prepare the journal entry to record the payment of the note on Scavenger's books.

Accepted Answer

The answer of On June 5,Scavenger Company borrowed $125,000 from...

Question 14

Elder Helpers Ltd estimates its income taxes at 35% of pre-tax income.For the quarter ended September 30,pre-tax income was $220,000.Prepare the journal entry to record the estimated income taxes and the subsequent remittance on October 5.

Accepted Answer

The answer of Elder Helpers Ltd estimates its income taxes...

Question 15

The employer should record payroll deductions as

Accepted Answer

A) Employee receivables 
B) Current liabilities 
C) Payroll taxes expense 
D) Wages payable 
E) Employee payables 
A) Employee receivables 
B) Current liabilities 
C) Payroll taxes expense 
D) Wages payable 
E) Employee payables

Question 16

A liability exists because of a past event that creates a future obligation for future sacrifices.

Accepted Answer

A) True 
 B)False

Question 17

A combined GST and PST rate of 12% applied to taxable supplies is called

Accepted Answer

A) zero-rated tax. 
B) harmonized Sales Tax. 
C) input Tax Credit. 
D) combined Sales Tax. 
E) none of these. 
A) zero-rated tax. 
B) harmonized Sales Tax. 
C) input Tax Credit. 
D) combined Sales Tax. 
E) none of these.

Question 18

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 19

The accounting for a contingent liability is the same as for a provision.

Accepted Answer

A) True 
 B)False

Question 20

West Coast Outdoor Co.sold $22,000 worth of trampolines with a one-year warranty.The company estimates that 2% of the sales will result in warranty work.West Coast Outdoor Co.should

Accepted Answer

A) Recognize warranty expense at the time of sale 
B) Recognize warranty expense at the time warranty work is performed 
C) Recognize warranty liability at the time of sale 
D) Recognize warranty expense and warranty liability at the time of sale 
E) Recognize warranty expense at the time warranty work is performed and warranty liability at the time of sale 
A) Recognize warranty expense at the time of sale 
B) Recognize warranty expense at the time warranty work is performed 
C) Recognize warranty liability at the time of sale 
D) Recognize warranty expense and warranty liability at the time of sale 
E) Recognize warranty expense at the time warranty work is performed and warranty liability at the time of sale

Estimated liabilities are also referred to as provisions.

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.

The receipt of $6,000 in advance ticket sales would be recorded as

The difference between the amount received from a note payable and the amount repaid is

Long-term liabilities

Sales taxes payable is credited,and cash is debited when firms send sales taxes collected from customers to the government.

Accounts payable

On November 16,2020,Kinsmen Sports gave Source for Sports a 120-day,8%,$130,000 note payable to extend a past due account payable.What amount of interest expense should Source for Sports report for calendar 2020?

Trade accounts payable are amounts owed to suppliers for products or services purchased on credit.

Gross pay is the same as net pay.

On June 5,Scavenger Company borrowed $125,000 from BC Bank.The loan had an interest rate of 10% and was due in 90 days.Scavenger Company's fiscal year-end is December 31.Prepare the journal entry to record the payment of the note on Scavenger's books.

Elder Helpers Ltd estimates its income taxes at 35% of pre-tax income.For the quarter ended September 30,pre-tax income was $220,000.Prepare the journal entry to record the estimated income taxes and the subsequent remittance on October 5.

The employer should record payroll deductions as

A liability exists because of a past event that creates a future obligation for future sacrifices.

A combined GST and PST rate of 12% applied to taxable supplies is called

Uncertainties such as doubtful accounts

The accounting for a contingent liability is the same as for a provision.

West Coast Outdoor Co.sold $22,000 worth of trampolines with a one-year warranty.The company estimates that 2% of the sales will result in warranty work.West Coast Outdoor Co.should

Property, plant and Equipment 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 2: Current Liabilities

Estimated liabilities are also referred to as provisions.

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.

The receipt of $6,000 in advance ticket sales would be recorded as

The difference between the amount received from a note payable and the amount repaid is

Long-term liabilities

Sales taxes payable is credited,and cash is debited when firms send sales taxes collected from customers to the government.

Accounts payable

On November 16,2020,Kinsmen Sports gave Source for Sports a 120-day,8%,$130,000 note payable to extend a past due account payable.What amount of interest expense should Source for Sports report for calendar 2020?

Trade accounts payable are amounts owed to suppliers for products or services purchased on credit.

Gross pay is the same as net pay.

On June 5,Scavenger Company borrowed $125,000 from BC Bank.The loan had an interest rate of 10% and was due in 90 days.Scavenger Company's fiscal year-end is December 31.Prepare the journal entry to record the payment of the note on Scavenger's books.

Elder Helpers Ltd estimates its income taxes at 35% of pre-tax income.For the quarter ended September 30,pre-tax income was $220,000.Prepare the journal entry to record the estimated income taxes and the subsequent remittance on October 5.

The employer should record payroll deductions as

A liability exists because of a past event that creates a future obligation for future sacrifices.

A combined GST and PST rate of 12% applied to taxable supplies is called

Uncertainties such as doubtful accounts

The accounting for a contingent liability is the same as for a provision.

West Coast Outdoor Co.sold $22,000 worth of trampolines with a one-year warranty.The company estimates that 2% of the sales will result in warranty work.West Coast Outdoor Co.should

Property, plant and Equipment 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