Exam 9: Long-Lived Tangible and Intangible Assets

G Co, a biotechnology company, reported current assets of $1,326.5 million and current liabilities of $484.1 million in 20X3 and in 20X2, current assets of $1,242.0 million and $291.3 million of current liabilities. Therefore, working capital for G Co. increased from 20X2 to 20X3.

The following is a partial list of account balances from the books of Ellsworth Enterprise at the end of 20X1: Trade Payables \ 1,200 Trade Receivables 1,000 Accrued Vacation Liability 900 Cash 3,000 Deferred Revenue 500 Income Taxes Payable 2,200 Notes Payable (due in 2 years) 600 Based solely upon these balances, what amount of current liabilities should appear on Ellsworth's 20X1 year-end statement of financial position?

On December 31, 20X5, Gold Charter Airlines has $2,000,000 in short-term notes payable due on February 10, 20X6. On January 10, 20X6, Gold arranged a line of credit with Fargo Wells Bank, which allows Gold to borrow up to $1,500,000 at 1% above the prime rate for three years. On February 2, 20X6, Gold borrowed $1,200,000 from Fargo Wells Bank and used $500,000 additional cash to liquidate $1,700,000 of the short-term notes payable. What is the amount of the short-term notes payable that should be reported as current liabilities on Gold's December 31, 20X5 statement of financial position (to be issued on Feb 28, 20X5) is

Hallberg Company reported total assets of $165,000; current assets of $22,000; total shareholders' equity of $57,000; and non-current liabilities of $85,000. Required: (show computations). Compute Working Capital. $___________________

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

Calculation of the amount of the equal periodic payments that would be required at the end of each year to accumulate a $20,000 fund at the end of the tenth year is most readily determined by reference to a table that shows which of the following?

On January 1, 20X3, Osler Limited, a calendar-year company, issued $160,000 of notes payable, of which $40,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 20X3, is

Current liabilities are short-term obligations that will be paid within the current operating cycle of the business or within two years of the statement of financial position date, whichever is longer.

The trade payables turnover ratio can be manipulated by management through paying off more of their vendors at the end of the year, even though they have been paying late all year, so their ratio would look acceptable.

The amount of salary expense that a company records for a pay period will usually be less than the amount of salary payable that it records.

A liability, to be reported on the statement of financial position, must have a fixed, known amount to be paid in the future.

A note payable must always be paid before an account payable.

An accrued expense arises because an expense item has been prepaid, but the related expense has not been incurred yet.

GST (goods and services tax) collected by a retailer are expenses

What are "Future Income taxes"? Where specifically would they appear in financial statements?

A future tax asset indicates that the company

When the occurrence of a liability is dependent on the outcome of some future event, the liability is referred to as a(n)

Deferred revenues should be classified as Other Revenues on the statement of earnings.

Match the liabilities with their usual classification on the statement of financial position by entering the appropriate letters in the spaces. Usual Classification A. Current liability B. Long-term liability C. Current or long-term liability D. None of the above Liabilities (1) Rent payable (2) Payroll Income Taxes payable (3) Interest payable (4) Mortgage payable (due in 2 years) (5) Bond payable, current portion (6) Notes payable (7) Cash deposits (advances) received from customer for services to be performed in six months (8) Bonds payable (due in 6 years) (10) Accumulated Depreciation (11) Employee income taxes withheld (12) Trade receivables (13) Trade payables (14) Allowance for doubtful accounts (15) Current Income tax payable

Cress Company is involved in a lawsuit. Note disclosure of the contingent liability which could arise does NOT have to be presented if the probability of Cress owing money as a result of the lawsuit is which of the following?