Site Company had the following account balances related to payroll at the end of the period: \[\begin{array} { | l | r | } \hline \text { CPP payable - employees' share } & 7,000 \\ \hline \text { Liability for income taxes withheld } & 20,000 \\ \hline \text { Salary and wage expense } & 95,000 \\ \hline \end{array}\] Without considering any employer payroll taxes, Site would record Salaries Payable for the pay period amounting to which of the following?

A) $61,000 B) $68,000 C) $75,000 D) $95,000 A) $61,000 B) $68,000 C) $75,000 D) $95,000

Haletone Corp provides the following information for 20X6 and 20X7 \[\begin{array} { | l | r | r | } \hline & \underline { \mathbf { 2 0 X6 } } & \underline { \mathbf { 2 0 X 7 } } \\ \hline \text { Current assets } & \$ 23,000 & \$ 27,000 \\ \hline \text { Accounts payable } & 9,000 & 10,000 \\ \hline \text { Other current liabilities } & 5,000 & 4,000 \\ \hline \text { Non-current liabilities } & 50,000 & 62,000 \\ \hline \text { Sales } & 125,000 & 135,000 \\ \hline \text { Cost of sales } & 75,000 & 79,600 \\ \hline \end{array}\] Haletone's days payable outstanding for 20X7 is closest to

A) 47.2 days B) 43.6 days C) 48 days D) 46.2 A) 47.2 days B) 43.6 days C) 48 days D) 46.2

The following data were provided by the detailed payroll records of Journey Corporation for the month of March 20X0: \[\begin{array} { | l | r | } \hline \text { Salaries } & \$ 20,000 \\ \hline \text { Wages } & 15,000 \\ \hline \text { Income taxes withheld } & 7,350 \\ \hline \text { Union dues } & 175 \\ \hline \end{array}\] Income taxes at an average 7.65% rate (no employee has reached the maximum) Required: 1. Give the March 31, 20X0 entry to record the payroll and related employee deductions. 2. Give the March 31, 20X0 entry to record the employer's payroll income tax expense.

Requirement 1: \[\begin{array} { | l | r

Exam 9: Long-Lived Tangible and Intangible Assets

Gothic Architects Inc. received its annual property tax bill for $7,800 in January. It is due on February 28th. What is the journal entry that should be made in January?

(Multiple Choice)

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Question 121

The interest charged on a $200,000 note payable, at the rate of 6%, on a 3-month note would be

(Multiple Choice)

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Question 122

Alamo Autoworks, Inc. is involved in a lawsuit. Their lawyers state that it is probable that the jury will ﬁnd in favour of the plaintiff and Alamo will owe two million dollars. Even though the lawsuit is not yet settled, Alamo should record a liability in the statement of ﬁnancial position as which of the following?

(Multiple Choice)

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Question 123

Site Company had the following account balances related to payroll at the end of the period: CPP payable - employees' share 7,000 Liability for income taxes withheld 20,000 Salary and wage expense 95,000 Without considering any employer payroll taxes, Site would record Salaries Payable for the pay period amounting to which of the following?

(Multiple Choice)

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Question 124

If the market rate of interest is 10%, a rational person would just as soon receive $1,100 three years from now as what amount today (round to the nearest dollar)?

(Multiple Choice)

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Question 125

Kristen's grandmother promises to give her $1,000 at the end of each of the next five years. How much is the money worth today, assuming Kristen could invest the money and earn a 6% annual rate of return? (Round to the nearest dollar).

(Multiple Choice)

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Question 126

A commitment is a contractual agreement to enter into a transaction with another party in the future.

(True/False)

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Question 127

The time value of money refers to the fact that interest accrues on borrowed money with the passage of time.

(True/False)

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Question 128

Big Top Electronics Inc. offers a two-year warranty on its products. The estimated liability is 4% of sales in the year of sale and 6% in the second year. Sales for 20X0 and 20X1 were: $2,500,000 and $2,800,000, respectively. They incurred no warranty costs in 20X0 but in 20X1 they spent $175,000 on repairs related to the warranties from 20X0 and 20X1. -Big Top's warranty liability at the year-end 20X0 is

(Multiple Choice)

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Question 129

Haletone Corp provides the following information for 20X6 and 20X7 Current assets \ 23,000 \ 27,000 Accounts payable 9,000 10,000 Other current liabilities 5,000 4,000 Non-current liabilities 50,000 62,000 Sales 125,000 135,000 Cost of sales 75,000 79,600 Haletone's days payable outstanding for 20X7 is closest to

(Multiple Choice)

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Question 130

Which of the following is correct with respect to a contingent liability that is "reasonably possible" but "cannot reasonably be estimated"?

(Multiple Choice)

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Question 131

Future Income taxes are caused by which of the following?

(Multiple Choice)

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Question 132

An amount is to be deposited in a savings account at the end of each year in order to provide funds for a trip to Europe, at the end of the fourth year. You have been asked to determine the amount of the annual deposit. What is the interest concept that best describes this application?

(Multiple Choice)

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Question 133

Which of the following most likely would be classiﬁed as a current liability?

(Multiple Choice)

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Question 134

The future value of $1 is always more than $1, whereas the present value of $1 is always less than $1.

(True/False)

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Question 135

Analysts use the quick ratio to assess the proﬁtability of a company.

(True/False)

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Question 136

Notes payable usually require the borrower to pay interest.

(True/False)

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Question 137

In 20X2, The W D Company reported the following increases or decreases in current assets and current liabilities. Identify whether each of these increases or decreases caused cash to increase or decrease. Show increases with a (+) in front of the amount and decreases with a (-) in front of the amount in the column labelled cash effect. Changes in current assets and liabilities Account Account Balance Change Cash Effect (+/-) Receivables - CA Decrease \3 66 1. Inventories - CA Decrease \1 03 2. Film and television costs - CA Increase \8 48 3. Trade payables - CL Decrease \1 79 4. Current portion of borrowings - CL Increase \2 92 5. Unearned royalties - CL Increase \6 9 6.

(Essay)

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Question 138

The following data were provided by the detailed payroll records of Journey Corporation for the month of March 20X0: Salaries \ 20,000 Wages 15,000 Income taxes withheld 7,350 Union dues 175 Income taxes at an average 7.65% rate (no employee has reached the maximum) Required: 1. Give the March 31, 20X0 entry to record the payroll and related employee deductions. 2. Give the March 31, 20X0 entry to record the employer's payroll income tax expense.

(Essay)

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Question 139

The trade payables turnover ratio can indicate if a company is experiencing cash ﬂow problems.

(True/False)

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Question 140

Showing 121 - 140 of 146

Gothic Architects Inc. received its annual property tax bill for $7,800 in January. It is due on February 28th. What is the journal entry that should be made in January?

The interest charged on a $200,000 note payable, at the rate of 6%, on a 3-month note would be

If the market rate of interest is 10%, a rational person would just as soon receive $1,100 three years from now as what amount today (round to the nearest dollar)?

Kristen's grandmother promises to give her $1,000 at the end of each of the next five years. How much is the money worth today, assuming Kristen could invest the money and earn a 6% annual rate of return? (Round to the nearest dollar).

A commitment is a contractual agreement to enter into a transaction with another party in the future.

The time value of money refers to the fact that interest accrues on borrowed money with the passage of time.

Which of the following is correct with respect to a contingent liability that is "reasonably possible" but "cannot reasonably be estimated"?

Future Income taxes are caused by which of the following?

An amount is to be deposited in a savings account at the end of each year in order to provide funds for a trip to Europe, at the end of the fourth year. You have been asked to determine the amount of the annual deposit. What is the interest concept that best describes this application?

Which of the following most likely would be classiﬁed as a current liability?

The future value of $1 is always more than $1, whereas the present value of $1 is always less than $1.

Analysts use the quick ratio to assess the proﬁtability of a company.

Notes payable usually require the borrower to pay interest.

The trade payables turnover ratio can indicate if a company is experiencing cash ﬂow problems.

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments, Financial Statements, and Financial Results

Fraud, Internal Control, and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables, Bad Debt Expense, and Interest Revenue

Liabilities

Stockholders Equity

Statement Cash Flows

Measuring and Evaluating Financial Performance

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