Exam 10: Reporting and Analyzing Liabilities

Roofer's Inc. had an operating line of credit of $100,000 and overdrew its bank balance to result in a negative cash balance of $33,000 at year-end. This would be reported in the statement of financial position as

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

How much is the discount or premium on the bond?

Interest expense on a note payable, with interest due at maturity, is

Instalment payments consist of a mix of interest on the unpaid balance of the loan and a reduction of the loan principal.

Off-balance sheet financing usually is found in connection with

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

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

On March 1, Brutto Corp. issues a 3 year, 5%, $60,000 note payable. The terms of the note include monthly blended principal and interest payments of $1,799. The entry to record the first instalment payment will include a

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

Interest expense on a bank loan payable is only recorded at maturity.

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

To the nearest dollar, how much bond interest expense is recorded on the first interest date?

On January 1, 2018, Junction Limited, a calendar-year company, issued $160,000 of notes payable, of which $65,000 is due on January 1 for each of the next four years. The proper statement of financial position presentation on December 31, 2018, is

The relationship between current assets and current liabilities is

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

A long-term note secured by collateral maybe referred to as a

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

If a company's fiscal year is the same as the calendar year used for property tax purposes, there should be no prepaid property tax on its year-end financial statements but there may be a property tax liability.

The entry to record interest expense on a bank loan payable is a