Question 1

Complete the following statements:
-The ________ value of a note payable is the amount of ____________ due at maturity date.

Accepted Answer

face, principal

Question 2

Shareholder control is diminished by the issue of debt financing.

Accepted Answer

A) True 
 B)False  False

Question 3

Non-current liabilities are obligations of a business that it expects to pay after one year.

Accepted Answer

A) True 
 B)False  True

Question 4

Match the descriptions with their terms:
-An obligation that is not classified as a current liability

Accepted Answer

A)  Non-current liability 
B)  Present value 
C)  Warranty 
D)  Issue price 
E)  Current liability
F) Borrowing costs
G) Contract interest rate
H) Mortgage
I) Quick ratio
J) Provision 
A)  Non-current liability 
B)  Present value 
C)  Warranty 
D)  Issue price 
E)  Current liability
F) Borrowing costs
G) Contract interest rate
H) Mortgage
I) Quick ratio
J) Provision

Question 5

To the extent that long-term debt is repayable within the same period as current liabilities, it should be classified as a current liability.

Accepted Answer

A) True 
 B)False

Question 6

Provisions are liabilities for which the amount of the future sacrifice is uncertain.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not an example of a provision?

Accepted Answer

A)  Warranty for motor vehicle repairs 
B)  Employee long service leave entitlements 
C)  Debentures issued 
D)  Employee annual leave entitlements 
A)  Warranty for motor vehicle repairs 
B)  Employee long service leave entitlements 
C)  Debentures issued 
D)  Employee annual leave entitlements

Question 8

Warranties are not recognised as liabilities by manufacturers as the amount of any future claims is too uncertain and/or unlikely.

Accepted Answer

A) True 
 B)False

Question 9

Match (by letter) each of the following as being :
-5 year debentures payable

Accepted Answer

A)  current liability (CL) 
B)  non-current liability (NCL) 
C)  neither (N
A) . 
A)  current liability (CL) 
B)  non-current liability (NCL) 
C)  neither (N
A) .

Question 10

On 1 October, Simon's Solar Service borrows $150,000 from Statewide Bank on a 3 month, 4% note.
-What accrual entry must Simon's Solar Service make on 31 December before financial statements are prepared?

Accepted Answer

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

Question 11

The NZA Bank agrees to issue $180,000 of 3-month notes payable to Campbell Ltd on 1 March 2019. The notes are interest-bearing at the rate of 10%.
Prepare the journal entries to record:
(a) the notes on issue date
(b) the repayment of the notes including the interest, on due date.

Accepted Answer

The answer of The NZA Bank agrees to issue $180,000...

Question 12

Beach Ltd's payroll for June 2019 was $20,000. The pay week ended on 30 June and was paid on the 1 July. Payroll deductions from amounts paid during June were as follows:
   Required:
(a) State the current liabilities relating to Beach Ltd's payroll at 30 June 2019.
(b) Prepare the journal entry to record the payroll for the pay week ended 30 June.

Accepted Answer

The answer of Beach Ltd's payroll for June 2019 was...

Question 13

The following information relates to Rangitata Ltd as at 30 June 2019.
  The quick ratio is:

Accepted Answer

A)  2. 
B)  9. 
C)  14. 
D)  0.14. 
A)  2. 
B)  9. 
C)  14. 
D)  0.14.

Question 14

Each time a borrower makes a mortgage repayment, the borrower must allocate the amount between unearned revenue and revenue.

Accepted Answer

A) True 
 B)False

Question 15

Match (by letter) each of the following as being :
-Interest expense

Accepted Answer

A)  current liability (CL) 
B)  non-current liability (NCL) 
C)  neither (N
A) . 
A)  current liability (CL) 
B)  non-current liability (NCL) 
C)  neither (N
A) .

Question 16

If a company redeems notes and debentures, it adds debt to its statement of financial position.

Accepted Answer

A) True 
 B)False

Question 17

Sydney Symphony sells 200 season tickets for $20,000 that includes a five-concert season. The amount of unearned ticket revenue after the third concert is $12,000.

Accepted Answer

A) True 
 B)False

Question 18

Match the descriptions with their terms:
-A measure of an entity's immediate short-term liquidity, also called the acid-test

Accepted Answer

A)  Non-current liability 
B)  Present value 
C)  Warranty 
D)  Issue price 
E)  Current liability
F) Borrowing costs
G) Contract interest rate
H) Mortgage
I) Quick ratio
J) Provision 
A)  Non-current liability 
B)  Present value 
C)  Warranty 
D)  Issue price 
E)  Current liability
F) Borrowing costs
G) Contract interest rate
H) Mortgage
I) Quick ratio
J) Provision

Question 19

A borrower must allocate mortgage repayments between:

Accepted Answer

A)  interest expense and interest revenue. 
B)  interest expense and loan liability. 
C)  interest revenue and loan liability. 
D)  loan liability and shareholders' equity. 
A)  interest expense and interest revenue. 
B)  interest expense and loan liability. 
C)  interest revenue and loan liability. 
D)  loan liability and shareholders' equity.

Question 20

Complete the following statements:
-Liabilities are classified on the statement of financial position as being _______________ liabilities or ______________ liabilities.

Accepted Answer

current, n

Complete the following statements: -The value of a note payable is the amount of ____ due at maturity date.

Shareholder control is diminished by the issue of debt financing.

Non-current liabilities are obligations of a business that it expects to pay after one year.

Match the descriptions with their terms: -An obligation that is not classified as a current liability

To the extent that long-term debt is repayable within the same period as current liabilities, it should be classified as a current liability.

Provisions are liabilities for which the amount of the future sacrifice is uncertain.

Which of the following is not an example of a provision?

Warranties are not recognised as liabilities by manufacturers as the amount of any future claims is too uncertain and/or unlikely.

Match (by letter) each of the following as being : -5 year debentures payable

On 1 October, Simon's Solar Service borrows $150,000 from Statewide Bank on a 3 month, 4% note. -What accrual entry must Simon's Solar Service make on 31 December before financial statements are prepared?

The NZA Bank agrees to issue $180,000 of 3-month notes payable to Campbell Ltd on 1 March 2019. The notes are interest-bearing at the rate of 10%. Prepare the journal entries to record: (a) the notes on issue date (b) the repayment of the notes including the interest, on due date.

The following information relates to Rangitata Ltd as at 30 June 2019. The quick ratio is:

Each time a borrower makes a mortgage repayment, the borrower must allocate the amount between unearned revenue and revenue.

Match (by letter) each of the following as being : -Interest expense

If a company redeems notes and debentures, it adds debt to its statement of financial position.

Sydney Symphony sells 200 season tickets for $20,000 that includes a five-concert season. The amount of unearned ticket revenue after the third concert is $12,000.

Match the descriptions with their terms: -A measure of an entity's immediate short-term liquidity, also called the acid-test

A borrower must allocate mortgage repayments between:

Complete the following statements: -Liabilities are classified on the statement of financial position as being _ liabilities or liabilities.

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Exam 9: Reporting and Analysing Liabilities

Complete the following statements: -The ________ value of a note payable is the amount of ____________ due at maturity date.

Shareholder control is diminished by the issue of debt financing.

Non-current liabilities are obligations of a business that it expects to pay after one year.

Match the descriptions with their terms: -An obligation that is not classified as a current liability

To the extent that long-term debt is repayable within the same period as current liabilities, it should be classified as a current liability.

Provisions are liabilities for which the amount of the future sacrifice is uncertain.

Which of the following is not an example of a provision?

Warranties are not recognised as liabilities by manufacturers as the amount of any future claims is too uncertain and/or unlikely.

Match (by letter) each of the following as being : -5 year debentures payable

On 1 October, Simon's Solar Service borrows $150,000 from Statewide Bank on a 3 month, 4% note. -What accrual entry must Simon's Solar Service make on 31 December before financial statements are prepared?

The NZA Bank agrees to issue $180,000 of 3-month notes payable to Campbell Ltd on 1 March 2019. The notes are interest-bearing at the rate of 10%. Prepare the journal entries to record: (a) the notes on issue date (b) the repayment of the notes including the interest, on due date.

The following information relates to Rangitata Ltd as at 30 June 2019. The quick ratio is:

Each time a borrower makes a mortgage repayment, the borrower must allocate the amount between unearned revenue and revenue.

Match (by letter) each of the following as being : -Interest expense

If a company redeems notes and debentures, it adds debt to its statement of financial position.

Sydney Symphony sells 200 season tickets for $20,000 that includes a five-concert season. The amount of unearned ticket revenue after the third concert is $12,000.

Match the descriptions with their terms: -A measure of an entity's immediate short-term liquidity, also called the acid-test

A borrower must allocate mortgage repayments between:

Complete the following statements: -Liabilities are classified on the statement of financial position as being _______________ liabilities or ______________ liabilities.

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Complete the following statements: -The value of a note payable is the amount of ____ due at maturity date.

Complete the following statements: -Liabilities are classified on the statement of financial position as being _ liabilities or liabilities.