Exam 10: Reporting and Analyzing Liabilities

Use the following information to answer questions Angel Eyes Corporation operates on a calendar year basis.The company is in its first year of operations and received its annual property tax bill on March 31 for $21,000.The bill is due May 1.Even though the company records adjusting entries on a monthly basis, no entries related to property taxes have been recorded. -The March 31 entry to record property tax should be

Under IFRS, if a company can determine a reasonable estimate of an expected loss from a lawsuit and it is probable it will lose the suit, it should

Which of the following statements is true?

Last year, Hadley Bakery's statement of income reported the following: net income, $325,600; interest expense, $81,400; and income tax expense, $113,960.The company's times interest earned ratio is

On March 1, Brutto Corp.issues a 3 year, 5%, $60,000 bond at face value.Interest is paid semi-annually.The entry to record the first interest payment will include a

Long-term notes may have

If the market interest rate at the date of a bond issue is greater than the coupon interest rate, the bond will be issued at a premium.

With loans that have equal periodic instalment payments, the interest portion of the payment___ each period as the principal portion of the payment ___.

Interest (finance) expenses are separately reported in the "other gain and revenues" section of the statement of income.

The market interest rate is often called the

The journal entry to record the issue of bonds at a discount will include a

While short-term notes are generally repayable in full at maturity, most long-term notes are repayable in a series of periodic payments called instalments.