Exam 9: Current Liabilities, Contingencies, and the True Value of Money

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The future value of equal semi-annual payments of $500 at 8% compounded semiannually for 4 years is

(Multiple Choice)

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Question 61

U.S.standards require a classified balance sheet, but International accounting standards do not require companies to present classified balance sheets with liabilities classified as either current or long term.

(True/False)

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Question 62

From the following list, identify whether the change in the account balance during the year would be reported as operating (O) cash flow, investing (I) cash flow, financing (F) cash flow or not separately (N) reported on the statement of cash flows.Assume that the indirect method is used to prepare the operating activities section.Use the following response choices a-d. -Accounts payable

(Multiple Choice)

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Question 63

What is the correct classification of the account: Discount on Notes Payable?

(Multiple Choice)

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Question 64

Which of the following is not classified as a noncurrent liability?

(Multiple Choice)

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Question 65

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The table factor for the future value of an annuity for 4 annual deposits at 8% is

(Multiple Choice)

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Question 66

A possible loss from lawsuit is not reported on the balance sheet as a current liability.

(True/False)

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Question 67

Simple interest on a loan can be calculated by multiplying the principal by the annual interest rate expressed as a percentage of the time in years or a fraction of the time in years.

(True/False)

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Question 68

Using the indirect method, an increase in accounts payable would be shown as a(n) ___ in the _ Activities section of the statement of cash flows.

(Short Answer)

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Question 69

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. Pablos wants to save some money so that he can make a down payment of $3,000 on a car when he graduates from college 4 years from now.If he opens a savings account and earns 3% on his money, compounded annually, how much will he have to invest now?

(Multiple Choice)

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Question 70

In a compound interest problem, if you know the future value, the present value, and the number of periods, then you can solve for the interest rate.

(True/False)

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Question 71

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. If Vito has $5,000 per year to invest for 10 years and wants to accumulate $87,745 at the end of that time, he must find an investment that is earning at a rate of

(Multiple Choice)

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Question 72

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. Kingston inherited $140,000 from an aunt.If Kingston decides not to spend his inheritance but to leave the money in his savings account until he retires in 15 years, how much money will he have assuming an annual interest rate of 8%, compounded semiannually?

(Multiple Choice)

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Question 73

If the present and future values are known along with the number of periods, then the _________________________ can be determined.

(Short Answer)

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Question 74

Assume the current ratio is 3 to 4.Purchases of inventory on account would cause the current ratio to

(Multiple Choice)

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Question 75

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. Mackie's individual retirement account (IRA) currently has a balance of $100,000 and is earning 6%.Beginning one year from today, what equal annual amounts can be withdrawn from the IRA for 10 years so that the balance after the tenth withdrawal is zero?

(Multiple Choice)

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Question 76

Boston Trombley Company is a defendant in a lawsuit alleging damages of $3 billion.The litigation is anticipated to continue for several years, but no reasonable estimate can be made at this time regarding ultimate financial responsibility.This situation is an example of:

(Multiple Choice)

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Question 77

Using the future value table, a student found that the future value amount of $1 for 5 years at an annual interest rate of 10% is 1.611.The student also observed that the future value of $1 for 5 years at 10% compounded semiannually is 1.629.This means that

(Multiple Choice)

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Question 78

International accounting standards require companies to present classified balance sheets with liabilities classified as either current or long term.

(True/False)

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Question 79

From the following list, identify whether the change in the account balance during the year would be reported as an operating (O), an investing (I), or a financing (F) activity or not separately reported on the statement of cash flows (N).Assume that the indirect method is used to determine the cash flows from operating activities. -Other accrued liabilities

(Multiple Choice)

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Question 80

Showing 61 - 80 of 184

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The future value of equal semi-annual payments of $500 at 8% compounded semiannually for 4 years is

U.S.standards require a classified balance sheet, but International accounting standards do not require companies to present classified balance sheets with liabilities classified as either current or long term.

What is the correct classification of the account: Discount on Notes Payable?

Which of the following is not classified as a noncurrent liability?

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The table factor for the future value of an annuity for 4 annual deposits at 8% is

A possible loss from lawsuit is not reported on the balance sheet as a current liability.

Simple interest on a loan can be calculated by multiplying the principal by the annual interest rate expressed as a percentage of the time in years or a fraction of the time in years.

Using the indirect method, an increase in accounts payable would be shown as a(n) ___ in the _ Activities section of the statement of cash flows.

In a compound interest problem, if you know the future value, the present value, and the number of periods, then you can solve for the interest rate.

If the present and future values are known along with the number of periods, then the _________________________ can be determined.

Assume the current ratio is 3 to 4.Purchases of inventory on account would cause the current ratio to

Boston Trombley Company is a defendant in a lawsuit alleging damages of $3 billion.The litigation is anticipated to continue for several years, but no reasonable estimate can be made at this time regarding ultimate financial responsibility.This situation is an example of:

Using the future value table, a student found that the future value amount of $1 for 5 years at an annual interest rate of 10% is 1.611.The student also observed that the future value of $1 for 5 years at 10% compounded semiannually is 1.629.This means that

International accounting standards require companies to present classified balance sheets with liabilities classified as either current or long term.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant and Equipment, and Intangibles

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 9: Current Liabilities, Contingencies, and the True Value of Money

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. ​ The future value of equal semi-annual payments of $500 at 8% compounded semiannually for 4 years is

U.S.standards require a classified balance sheet, but International accounting standards do not require companies to present classified balance sheets with liabilities classified as either current or long term.

What is the correct classification of the account: Discount on Notes Payable?

Which of the following is not classified as a noncurrent liability?

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The table factor for the future value of an annuity for 4 annual deposits at 8% is

A possible loss from lawsuit is not reported on the balance sheet as a current liability.

Simple interest on a loan can be calculated by multiplying the principal by the annual interest rate expressed as a percentage of the time in years or a fraction of the time in years.

Using the indirect method, an increase in accounts payable would be shown as a(n) _____________ in the ___________ Activities section of the statement of cash flows.

In a compound interest problem, if you know the future value, the present value, and the number of periods, then you can solve for the interest rate.

If the present and future values are known along with the number of periods, then the _________________________ can be determined.

Assume the current ratio is 3 to 4.Purchases of inventory on account would cause the current ratio to

Boston Trombley Company is a defendant in a lawsuit alleging damages of $3 billion.The litigation is anticipated to continue for several years, but no reasonable estimate can be made at this time regarding ultimate financial responsibility.This situation is an example of:

Using the future value table, a student found that the future value amount of $1 for 5 years at an annual interest rate of 10% is 1.611.The student also observed that the future value of $1 for 5 years at 10% compounded semiannually is 1.629.This means that

International accounting standards require companies to present classified balance sheets with liabilities classified as either current or long term.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant and Equipment, and Intangibles

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. The future value of equal semi-annual payments of $500 at 8% compounded semiannually for 4 years is

Using the indirect method, an increase in accounts payable would be shown as a(n) ___ in the _ Activities section of the statement of cash flows.