Question 1

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of the

Accepted Answer

A) interest paid over the life of the bond. 
B) interest paid over the life of the bond plus the amount of premium amortized. 
C) interest paid over the life of the bond minus the amount of premium amortized. 
D) premium. 
A) interest paid over the life of the bond. 
B) interest paid over the life of the bond plus the amount of premium amortized. 
C) interest paid over the life of the bond minus the amount of premium amortized. 
D) premium.

Question 2

If drawing on an operating line of credit results in a negative cash balance, a current liability known as bank indebtedness results.

Accepted Answer

A) True 
 B)False

Question 3

Use the following information for questions 
On October 1, 2022, 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.
-What adjusting entry is required at December 31, 2022?

Accepted Answer

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

Question 4

When a business sells an item and collects Harmonized Sales Tax (HST) on it, a current liability arises.

Accepted Answer

A) True 
 B)False

Question 5

Secured notes are often also referred to as mortgages.

Accepted Answer

A) True 
 B)False

Question 6

The carrying amount of a bond not issued at face value will always move

Accepted Answer

A) towards the face value. 
B) away from the face value. 
C) upwards. 
D) downwards. 
A) towards the face value. 
B) away from the face value. 
C) upwards. 
D) downwards.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Property tax payable is classified as a non-current liability because it is related to property, which is a non-current asset.

Accepted Answer

A) True 
 B)False

Question 9

If a bond has a face value of $10,000, a 6% coupon interest rate and a 4% market interest rate, then the semi-annual interest payment will be

Accepted Answer

A) $600. 
B) $400. 
C) $200. 
D) $300. 
A) $600. 
B) $400. 
C) $200. 
D) $300.

Question 10

Provisions are liabilities of uncertain timing or amount, along with some uncertainty as to whether the liability will have to be paid.

Accepted Answer

A) True 
 B)False

Question 11

The classification of a liability as current or non-current is important because it may affect the evaluation of a company's liquidity.

Accepted Answer

A) True 
 B)False

Question 12

Instalments can be paid

Accepted Answer

A)  monthly. 
B)  quarterly. 
C)  semi-annually. 
D)  all of the above 
A)  monthly. 
B)  quarterly. 
C)  semi-annually. 
D)  all of the above

Question 13

A financial liability is a

Accepted Answer

A) contractual obligation to receive cash in the future. 
B) contractual obligation to pay cash in the future. 
C) contractual obligation to issue common shares in the future. 
D) contractual obligation to issue a mortgage payable. 
A) contractual obligation to receive cash in the future. 
B) contractual obligation to pay cash in the future. 
C) contractual obligation to issue common shares in the future. 
D) contractual obligation to issue a mortgage payable.

Question 14

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 15

Liabilities with instalment payments are repayable in

Accepted Answer

A)  equal periodic amounts plus interest. 
B)  varying periodic amounts plus interest. 
C)  equal periodic amounts including interest. 
D)  varying periodic amounts including interest. 
A)  equal periodic amounts plus interest. 
B)  varying periodic amounts plus interest. 
C)  equal periodic amounts including interest. 
D)  varying periodic amounts including interest.

Question 16

Use the following information for questions 
On January 1 of this year, Gertoni Lenders agrees to lend Ester Corp.$150,000.Ester Corp.signs a $150,000, 6%, 9-month loan.Interest is due at maturity.
-What entry will Ester Corp.make to repay the loan on September 30, assuming no further adjusting entries have been made since June 30?

Accepted Answer

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

Question 17

When a long-term note payable has periodic instalment payments on fixed dates, it means that

Accepted Answer

A) the principal can be paid down at any time. 
B) the periodic payment decreases over time. 
C) the payment consists of interest on the unpaid balance of the loan at the beginning of the period. 
D) the payment does not include any portion of the loan principal.. 
A) the principal can be paid down at any time. 
B) the periodic payment decreases over time. 
C) the payment consists of interest on the unpaid balance of the loan at the beginning of the period. 
D) the payment does not include any portion of the loan principal..

Question 18

Use the following information for questions 
On October 1, 2022, 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, 2023 is

Accepted Answer

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

Question 19

Unsecured notes are issued against the general credit of the borrower.

Accepted Answer

A) True 
 B)False

Question 20

One example of a liability that is not a financial liability is

Accepted Answer

A)  notes payable. 
B)  deferred revenue. 
C)  bonds payable. 
D)  financial lease. 
A)  notes payable. 
B)  deferred revenue. 
C)  bonds payable. 
D)  financial lease.

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of the

If drawing on an operating line of credit results in a negative cash balance, a current liability known as bank indebtedness results.

Use the following information for questions On October 1, 2022, 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. -What adjusting entry is required at December 31, 2022?

When a business sells an item and collects Harmonized Sales Tax (HST) on it, a current liability arises.

Secured notes are often also referred to as mortgages.

The carrying amount of a bond not issued at face value will always move

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

Property tax payable is classified as a non-current liability because it is related to property, which is a non-current asset.

If a bond has a face value of $10,000, a 6% coupon interest rate and a 4% market interest rate, then the semi-annual interest payment will be

Provisions are liabilities of uncertain timing or amount, along with some uncertainty as to whether the liability will have to be paid.

The classification of a liability as current or non-current is important because it may affect the evaluation of a company's liquidity.

Instalments can be paid

A financial liability is a

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

Liabilities with instalment payments are repayable in

When a long-term note payable has periodic instalment payments on fixed dates, it means that

Unsecured notes are issued against the general credit of the borrower.

One example of a liability that is not a financial liability is

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

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Exam 10: Reporting and Analyzing Liabilities

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of the

If drawing on an operating line of credit results in a negative cash balance, a current liability known as bank indebtedness results.

Use the following information for questions On October 1, 2022, 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. -What adjusting entry is required at December 31, 2022?

When a business sells an item and collects Harmonized Sales Tax (HST) on it, a current liability arises.

Secured notes are often also referred to as mortgages.

The carrying amount of a bond not issued at face value will always move

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

Property tax payable is classified as a non-current liability because it is related to property, which is a non-current asset.

If a bond has a face value of $10,000, a 6% coupon interest rate and a 4% market interest rate, then the semi-annual interest payment will be

Provisions are liabilities of uncertain timing or amount, along with some uncertainty as to whether the liability will have to be paid.

The classification of a liability as current or non-current is important because it may affect the evaluation of a company's liquidity.

Instalments can be paid

A financial liability is a

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

Liabilities with instalment payments are repayable in

When a long-term note payable has periodic instalment payments on fixed dates, it means that

Unsecured notes are issued against the general credit of the borrower.

One example of a liability that is not a financial liability is

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters