Question 1

Bonds that are backed only by the credit of the issuing company are:

Accepted Answer

A) collateral bonds. 
B) callable bonds. 
C) unsecured bonds. 
D) term bonds. 
A) collateral bonds. 
B) callable bonds. 
C) unsecured bonds. 
D) term bonds.

Question 2

Which of the following accurately describes how contingent liabilities are reported on the Balance Sheet?

Accepted Answer

A) Contingent liabilities are not reported. 
B) Contingent liabilities are disclosed in the footnotes only. 
C) Contingent liabilities are reported in the liabilities section. 
D) The accounting treatment for contingent liability could be A, B, or C depending on the likelihood of an actual obligation occurring. 
A) Contingent liabilities are not reported. 
B) Contingent liabilities are disclosed in the footnotes only. 
C) Contingent liabilities are reported in the liabilities section. 
D) The accounting treatment for contingent liability could be A, B, or C depending on the likelihood of an actual obligation occurring.

Question 3

A good internal control for payroll is for the Human Resource Department to be in charge of distributing paychecks to employees.

Accepted Answer

A) True 
 B)False

Question 4

The Print Shoppe had sales on account of $7,000 which were subject to state sales tax of 6.5%. The entry to record the sales would be to: (Round your final answer to the nearest cent.)

Accepted Answer

A) debit Accounts Receivable $7,000; credit Sales Revenue $7,000. 
B) debit Accounts Receivable $7,000; debit Sales Tax Payable $455.00; credit Sales Revenue $7,455.00. 
C) debit Accounts Receivable $7,455.00; credit Sales Revenue $7,455.00. 
D) debit Accounts Receivable $7,455.00; credit Sales Revenue $7,000; credit Sales Tax Payable $455.00. 
A) debit Accounts Receivable $7,000; credit Sales Revenue $7,000. 
B) debit Accounts Receivable $7,000; debit Sales Tax Payable $455.00; credit Sales Revenue $7,455.00. 
C) debit Accounts Receivable $7,455.00; credit Sales Revenue $7,455.00. 
D) debit Accounts Receivable $7,455.00; credit Sales Revenue $7,000; credit Sales Tax Payable $455.00.

Question 5

For a liability to exist:

Accepted Answer

A) a past transaction or event must have occurred. 
B) the exact amount must be known. 
C) the identity of the party must be known. 
D) an obligation to pay cash in the future must exist. 
A) a past transaction or event must have occurred. 
B) the exact amount must be known. 
C) the identity of the party must be known. 
D) an obligation to pay cash in the future must exist.

Question 6

Kat's wages for December are $8,500. At the end of November, her cumulative gross earnings were $112,000. How much will her employer take out for the OASDI portion of social security for December? (Round your final answer to the nearest dollar.)

Accepted Answer

A) $403 
B) $497 
C) $527 
D) $650 
A) $403 
B) $497 
C) $527 
D) $650

Question 7

A $330,000 bond issue sold at 110 will cost: (Round your final answer to the nearest dollar.)

Accepted Answer

A) $330,000 
B) $363,000 
C) $300,000 
D) whatever cost is negotiated. 
A) $330,000 
B) $363,000 
C) $300,000 
D) whatever cost is negotiated.

Question 8

The combined FICA rate for employees is:

Accepted Answer

A) 7.65%. 
B) 1.45%. 
C) 6.20%. 
D) 0.80%. 
A) 7.65%. 
B) 1.45%. 
C) 6.20%. 
D) 0.80%.

Question 9

According to the matching principle, warranty expense must always be recorded in the same period as the related revenue.

Accepted Answer

A) True 
 B)False

Question 10

A known liability is always classified as a current liability.

Accepted Answer

A) True 
 B)False

Question 11

Bonds payable minus the Discount on bonds payable yields the:

Accepted Answer

A) maturity value. 
B) annual interest. 
C) carrying amount. 
D) principle amount. 
A) maturity value. 
B) annual interest. 
C) carrying amount. 
D) principle amount.

Bonds that are backed only by the credit of the issuing company are:

Which of the following accurately describes how contingent liabilities are reported on the Balance Sheet?

A good internal control for payroll is for the Human Resource Department to be in charge of distributing paychecks to employees.

The Print Shoppe had sales on account of $7,000 which were subject to state sales tax of 6.5%. The entry to record the sales would be to: (Round your final answer to the nearest cent.)

For a liability to exist:

Kat's wages for December are $8,500. At the end of November, her cumulative gross earnings were $112,000. How much will her employer take out for the OASDI portion of social security for December? (Round your final answer to the nearest dollar.)

A $330,000 bond issue sold at 110 will cost: (Round your final answer to the nearest dollar.)

The combined FICA rate for employees is:

According to the matching principle, warranty expense must always be recorded in the same period as the related revenue.

A known liability is always classified as a current liability.

Bonds payable minus the Discount on bonds payable yields the:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 9: Current Liabilities and Long-Term Debt

Bonds that are backed only by the credit of the issuing company are:

Which of the following accurately describes how contingent liabilities are reported on the Balance Sheet?

A good internal control for payroll is for the Human Resource Department to be in charge of distributing paychecks to employees.

The Print Shoppe had sales on account of $7,000 which were subject to state sales tax of 6.5%. The entry to record the sales would be to: (Round your final answer to the nearest cent.)

For a liability to exist:

Kat's wages for December are $8,500. At the end of November, her cumulative gross earnings were $112,000. How much will her employer take out for the OASDI portion of social security for December? (Round your final answer to the nearest dollar.)

A $330,000 bond issue sold at 110 will cost: (Round your final answer to the nearest dollar.)

The combined FICA rate for employees is:

According to the matching principle, warranty expense must always be recorded in the same period as the related revenue.

A known liability is always classified as a current liability.

Bonds payable minus the Discount on bonds payable yields the:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters