Question 1

Blended principal and interest 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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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.
-Assuming appropriate adjusting entries were completed for the April month end, what entry should be recorded for the payment on May 1?

Accepted Answer

A)  debit prepaid property tax $21,000 and credit cash $21,000 
B)  debits to prepaid property tax and property tax expense for $14,000 and $7,000, respectively and credit to cash for $21,000 
C)  debits to prepaid property tax and property tax payable for $14,000 and $7,000, respectively and credit to cash $21,000 
D)  debit property tax payable $15,750 and credit to cash $15,750. 
A)  debit prepaid property tax $21,000 and credit cash $21,000 
B)  debits to prepaid property tax and property tax expense for $14,000 and $7,000, respectively and credit to cash for $21,000 
C)  debits to prepaid property tax and property tax payable for $14,000 and $7,000, respectively and credit to cash $21,000 
D)  debit property tax payable $15,750 and credit to cash $15,750.

Question 4

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

Accepted Answer

A)  $1,500. 
B)  $222. 
C)  $167. 
D)  $2,000. 
A)  $1,500. 
B)  $222. 
C)  $167. 
D)  $2,000.

Question 5

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

Accepted Answer

A)  debit property tax expense $5,250 and credit property tax payable $5,250. 
B)  debit property tax expense $21,000 and credit property tax payable $21,000. 
C)  debits to prepaid property tax and property tax expense for $15,750 and $5,250, respectively and credits to property tax payable and cash for $15,750 and $5,250, respectively. 
D)  debits to prepaid property tax and property tax expense for $15,750 and $5,250, respectively and credit to property tax payable for $21,000. 
A)  debit property tax expense $5,250 and credit property tax payable $5,250. 
B)  debit property tax expense $21,000 and credit property tax payable $21,000. 
C)  debits to prepaid property tax and property tax expense for $15,750 and $5,250, respectively and credits to property tax payable and cash for $15,750 and $5,250, respectively. 
D)  debits to prepaid property tax and property tax expense for $15,750 and $5,250, respectively and credit to property tax payable for $21,000.

Question 6

If bonds are issued at a discount, the issuing corporation will pay a principal amount that is less than the face amount of the bonds on the maturity date.

Accepted Answer

A) True 
 B)False

Question 7

Jancy Corporation had cash sales of $150,000 for the month of August. Sales are subject to 13% harmonized sales tax (HST). Prepare the entry to record the sales.

Accepted Answer

The answer of Jancy Corporation had cash sales of $150,000...

Question 8

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 9

Which of the following statements is true?

Accepted Answer

A)  With fixed principal payments on a long-term note payable, the principal portion increases each period. 
B)  With fixed principal payments on a long-term note payable, the interest portion decreases each period. 
C)  With fixed principal payments on a long-term note payable, the interest portion does not change each period. 
D)  With fixed principal payments on a long-term note payable, the interest portion increases each period. 
A)  With fixed principal payments on a long-term note payable, the principal portion increases each period. 
B)  With fixed principal payments on a long-term note payable, the interest portion decreases each period. 
C)  With fixed principal payments on a long-term note payable, the interest portion does not change each period. 
D)  With fixed principal payments on a long-term note payable, the interest portion increases each period.

Question 10

A bond with a face value of $100,000 and a quoted price of 102.25 would have a selling price of

Accepted Answer

A)  $ 97,800. 
B)  $100,000. 
C)  $102,250. 
D)  $122,250. 
A)  $ 97,800. 
B)  $100,000. 
C)  $102,250. 
D)  $122,250.

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

A financial liability means there is a contractual obligation to pay cash in the future.

Accepted Answer

A) True 
 B)False

Question 13

Payroll liabilities include the employer's share of CPP contributions and EI premiums.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A)  debit to Cash for the face amount of the bonds. 
B)  debit to Cash for the face amount of the bonds plus the amount of the discount. 
C)  debit to Cash for the face amount of the bonds minus the amount of the discount. 
D)  credit to Cash for the face amount of the bonds.
Use the information below to answer questions 89-90.
Coldwater Inc. issues $575,000 of 4%, 8-year bonds for cash proceeds of $502,774. The market interest rate is 6%. Interest is paid semi-annually. 
A)  debit to Cash for the face amount of the bonds. 
B)  debit to Cash for the face amount of the bonds plus the amount of the discount. 
C)  debit to Cash for the face amount of the bonds minus the amount of the discount. 
D)  credit to Cash for the face amount of the bonds.
Use the information below to answer questions 89-90.
Coldwater Inc. issues $575,000 of 4%, 8-year bonds for cash proceeds of $502,774. The market interest rate is 6%. Interest is paid semi-annually.

Question 16

Use the following information for questions.
On October 1, 2018, 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, 2019 is

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

Question 17

Your friend, Malaya Claire, recently opened a retail shoe store. She knows she needs to pay sales tax but isn't sure how much. The GST and PST are calculated by the cash register. The GST rate is 5% and the PST rate is 8%. Sales, before taxes, for the first month of operations based on the cash register reports were $125,000. All sales are for cash, debit card, or bank credit card. Cost of goods sold is 50% of sales and a perpetual inventory system is used.Instructions
a. Calculate the amount of GST and PST.
b. Prepare the journal entry to record the sales and sales taxes, and cost of goods sold.

Accepted Answer

The answer of Your friend, Malaya Claire, recently opened a...

Question 18

Which of the following statements is true?

Accepted Answer

A)  The carrying amount of bonds issued at a discount will initially be higher than the face value. 
B)  The carrying amount of a bond is its face value less any unamortized premium or plus any unamortized discount. 
C)  The carrying amount of a bond is its face value plus any unamortized premium or less any unamortized discount. 
D)  The carrying amount of bonds issued at a premium will initially be lower than the face value. 
A)  The carrying amount of bonds issued at a discount will initially be higher than the face value. 
B)  The carrying amount of a bond is its face value less any unamortized premium or plus any unamortized discount. 
C)  The carrying amount of a bond is its face value plus any unamortized premium or less any unamortized discount. 
D)  The carrying amount of bonds issued at a premium will initially be lower than the face value.

Question 19

Amounts available to be drawn in the future from an operating line of credit improve a company's liquidity.

Accepted Answer

A) True 
 B)False

Question 20

When a bond is issued at a discount, the amount of interest expense for an interest period is calculated by

Accepted Answer

A)  multiplying the carrying amount times the market interest rate. 
B)  multiplying the carrying amount times the coupon interest rate. 
C)  multiplying the face amount of the bonds by the coupon interest rate. 
D)  multiplying the face amount of the bonds by the market interest rate. 
A)  multiplying the carrying amount times the market interest rate. 
B)  multiplying the carrying amount times the coupon interest rate. 
C)  multiplying the face amount of the bonds by the coupon interest rate. 
D)  multiplying the face amount of the bonds by the market interest rate.

Blended principal and interest payments are repayable in

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

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

If bonds are issued at a discount, the issuing corporation will pay a principal amount that is less than the face amount of the bonds on the maturity date.

Jancy Corporation had cash sales of $150,000 for the month of August. Sales are subject to 13% harmonized sales tax (HST). Prepare the entry to record the sales.

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

Which of the following statements is true?

A bond with a face value of $100,000 and a quoted price of 102.25 would have a selling price of

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

A financial liability means there is a contractual obligation to pay cash in the future.

Payroll liabilities include the employer's share of CPP contributions and EI premiums.

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

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

Which of the following statements is true?

Amounts available to be drawn in the future from an operating line of credit improve a company's liquidity.

When a bond is issued at a discount, the amount of interest expense for an interest period is calculated by

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

Exam 10: Reporting and Analyzing Liabilities

Blended principal and interest payments are repayable in

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

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

If bonds are issued at a discount, the issuing corporation will pay a principal amount that is less than the face amount of the bonds on the maturity date.

Jancy Corporation had cash sales of $150,000 for the month of August. Sales are subject to 13% harmonized sales tax (HST). Prepare the entry to record the sales.

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

Which of the following statements is true?

A bond with a face value of $100,000 and a quoted price of 102.25 would have a selling price of

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

A financial liability means there is a contractual obligation to pay cash in the future.

Payroll liabilities include the employer's share of CPP contributions and EI premiums.

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

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

Which of the following statements is true?

Amounts available to be drawn in the future from an operating line of credit improve a company's liquidity.

When a bond is issued at a discount, the amount of interest expense for an interest period is calculated by

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