Question 1

Under IFRS, contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

Accepted Answer

A) True 
 B)False

Question 2

Account for instalment notes payable.

Accepted Answer

Long-term notes payable are usually repa

Question 3

Use the following information for questions 
On October 1, 2015, Mekhi's Golf Service Limited borrows $80,000 from Rigor Bank by signing a 3-month, $80,000, 4% bank loan.Interest is due the first of each month.
-The entry by Mekhi's Golf Service to record payment of the loan and accrued interest on January 1, 2016 is

Accepted Answer

The answer of Use the following information for questions 
On...

Question 4

If interest is due at maturity, a $50,000, 4%, 9-month note payable requires an interest payment of $1,500.

Accepted Answer

A) True 
 B)False

Question 5

With fixed principal payments on a long-term note payable, the interest portion does not change each period.

Accepted Answer

A) True 
 B)False

Question 6

Amortization of a bond premium decreases interest expense recorded by the issuer.

Accepted Answer

A) True 
 B)False

Question 7

The relationship between current assets and current liabilities is

Accepted Answer

A) useful in determining profitability. 
B) useful in evaluating a company's liquidity. 
C) useful in evaluating a company's solvency. 
D) useful in determining the amount of a company's non-current debt. 
A) useful in determining profitability. 
B) useful in evaluating a company's liquidity. 
C) useful in evaluating a company's solvency. 
D) useful in determining the amount of a company's non-current debt.

Question 8

The face value of a bond is the amount of principal and interest due at the maturity date.

Accepted Answer

A) True 
 B)False

Question 9

Use the following information to answer questions 
The following totals for the month of April were taken from the payroll register of Yandeau Corp.:
  
-The journal entry to record the accrual of the employee's portion of Canada Pension Plan (CPP) would include a

Accepted Answer

A) credit to CPP Payable of $965. 
B) debit to CPP Expense of $965. 
C) credit to Employee Benefits Expense of $965. 
D) debit to CPP Payable of $965. 
A) credit to CPP Payable of $965. 
B) debit to CPP Expense of $965. 
C) credit to Employee Benefits Expense of $965. 
D) debit to CPP Payable of $965.

Question 10

Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

Accepted Answer

A) early retirement bonds. 
B) redeemable bonds. 
C) options. 
D) debentures. 
A) early retirement bonds. 
B) redeemable bonds. 
C) options. 
D) debentures.

Question 11

The terms of an operating line of credit and a notes (loans) payable are disclosed in the notes to the financial statements.

Accepted Answer

A) True 
 B)False

Question 12

Under ASPE, a contingent liability is recorded in the accounting records

Accepted Answer

A) if it is likely that a future event will confirm that a liability has been incurred and the amount of the related loss can be estimated. 
B) if the contingency has not already been disclosed in the notes to the financial statements. 
C) if the amount can be estimated, but the possibility of occurrence is remote. 
D) under no circumstances. 
A) if it is likely that a future event will confirm that a liability has been incurred and the amount of the related loss can be estimated. 
B) if the contingency has not already been disclosed in the notes to the financial statements. 
C) if the amount can be estimated, but the possibility of occurrence is remote. 
D) under no circumstances.

Question 13

As blended principal and interest payments are made on a long-term loan,

Accepted Answer

A) the interest portion increases and the principal portion decreases. 
B) the interest and principal portions remain the same. 
C) the interest portion decreases and the principal portion increases. 
D) both the interest portion and the principal portion decrease. 
A) the interest portion increases and the principal portion decreases. 
B) the interest and principal portions remain the same. 
C) the interest portion decreases and the principal portion increases. 
D) both the interest portion and the principal portion decrease.

Question 14

Notes payable are sometimes used instead of accounts payable.

Accepted Answer

A) True 
 B)False

Question 15

Liquidity ratios measure a company's

Accepted Answer

A) operating cycle. 
B) revenue-producing ability. 
C) short-term debt-paying ability. 
D) long-range solvency. 
A) operating cycle. 
B) revenue-producing ability. 
C) short-term debt-paying ability. 
D) long-range solvency.

Question 16

A contingent liability may materialize in the future because of something that happened in the past.

Accepted Answer

A) True 
 B)False

Question 17

Full disclosure of non- current debt is very important.

Accepted Answer

A) True 
 B)False

Question 18

The calculation of interest to be paid each interest period for a bond payable is not influenced by any premium or discount upon issue.

Accepted Answer

A) True 
 B)False

Question 19

Under IFRS, which of the following would most likely be classified as a current liability?

Accepted Answer

A) mortgage payable 
B) bonds payable 
C) bank indebtedness 
D) contingent liability 
A) mortgage payable 
B) bonds payable 
C) bank indebtedness 
D) contingent liability

Question 20

To the nearest dollar, what is the carrying amount of the bonds after the first interest payment?

Accepted Answer

A) $395,600 
B) $ 387,658 
C) $ 393,400 
D) $ 425,000 
A) $395,600 
B) $ 387,658 
C) $ 393,400 
D) $ 425,000

Under IFRS, contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

Account for instalment notes payable.

If interest is due at maturity, a $50,000, 4%, 9-month note payable requires an interest payment of $1,500.

With fixed principal payments on a long-term note payable, the interest portion does not change each period.

Amortization of a bond premium decreases interest expense recorded by the issuer.

The relationship between current assets and current liabilities is

The face value of a bond is the amount of principal and interest due at the maturity date.

Use the following information to answer questions The following totals for the month of April were taken from the payroll register of Yandeau Corp.: -The journal entry to record the accrual of the employee's portion of Canada Pension Plan (CPP) would include a

Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

The terms of an operating line of credit and a notes (loans) payable are disclosed in the notes to the financial statements.

Under ASPE, a contingent liability is recorded in the accounting records

As blended principal and interest payments are made on a long-term loan,

Notes payable are sometimes used instead of accounts payable.

Liquidity ratios measure a company's

A contingent liability may materialize in the future because of something that happened in the past.

Full disclosure of non- current debt is very important.

The calculation of interest to be paid each interest period for a bond payable is not influenced by any premium or discount upon issue.

Under IFRS, which of the following would most likely be classified as a current liability?

To the nearest dollar, what is the carrying amount of the bonds after the first interest payment?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Filters

Exam 10: Reporting and Analyzing Long-Lived Assets

Under IFRS, contingent liabilities should be recorded in the accounts if there is a remote possibility that the contingency will actually occur.

Account for instalment notes payable.

If interest is due at maturity, a $50,000, 4%, 9-month note payable requires an interest payment of $1,500.

With fixed principal payments on a long-term note payable, the interest portion does not change each period.

Amortization of a bond premium decreases interest expense recorded by the issuer.

The relationship between current assets and current liabilities is

The face value of a bond is the amount of principal and interest due at the maturity date.

Use the following information to answer questions The following totals for the month of April were taken from the payroll register of Yandeau Corp.: -The journal entry to record the accrual of the employee's portion of Canada Pension Plan (CPP) would include a

Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

The terms of an operating line of credit and a notes (loans) payable are disclosed in the notes to the financial statements.

Under ASPE, a contingent liability is recorded in the accounting records

As blended principal and interest payments are made on a long-term loan,

Notes payable are sometimes used instead of accounts payable.

Liquidity ratios measure a company's

A contingent liability may materialize in the future because of something that happened in the past.

Full disclosure of non- current debt is very important.

The calculation of interest to be paid each interest period for a bond payable is not influenced by any premium or discount upon issue.

Under IFRS, which of the following would most likely be classified as a current liability?

To the nearest dollar, what is the carrying amount of the bonds after the first interest payment?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Filters