Question 1

Warranty expense must be estimated and matched to revenues.

Accepted Answer

A) True 
 B)False

Question 2

A known liability is always classified as a current liability.

Accepted Answer

A) True 
 B)False

Question 3

Northwest Electric had cash sales for the month totaling $73,200.Northwest offers a 6-month warranty on its services.If Northwest estimates warranty claims will equal 2% of sales,the journal entry to record the estimated warranty expense for the month is:

Accepted Answer

A) debit Warranty expense,$1,464;credit Cash,$1,464. 
B) debit Warranty expense,$1,464;credit Estimated warranty payable,$1,464. 
C) debit Warranty expense,$1,464;credit Sales revenue,$1,464. 
D) debit Estimated warranty payable,$1,464;credit Warranty expense,$1,464. 
A) debit Warranty expense,$1,464;credit Cash,$1,464. 
B) debit Warranty expense,$1,464;credit Estimated warranty payable,$1,464. 
C) debit Warranty expense,$1,464;credit Sales revenue,$1,464. 
D) debit Estimated warranty payable,$1,464;credit Warranty expense,$1,464.

Question 4

The largest portion of Accounts Payable for most merchandising companies is related to the purchase of inventory on account.

Accepted Answer

A) True 
 B)False

Question 5

The lower the number of withholdings claimed on a W-4,the:

Accepted Answer

A) higher the gross pay. 
B) higher the net pay. 
C) lower the gross pay. 
D) lower the net pay. 
A) higher the gross pay. 
B) higher the net pay. 
C) lower the gross pay. 
D) lower the net pay.

Question 6

$200,000 of 6%,25-year bonds were sold for $190,000 on January 1.The bonds require semiannual interest payments on June 30 and December 31.The entry to record the June 30 interest payment on the bonds would be to:

Accepted Answer

A) debit Interest Expense $6,000;credit Cash,$6,000. 
B) debit Interest Expense $6,200;credit Discount on bonds payable,$200;credit Cash,$6,000. 
C) debit Interest Expense $5,800;debit Discount on bonds payable,$200;credit Cash,$6,000. 
D) debit Interest Expense $6,200;credit Cash,$6,200. 
A) debit Interest Expense $6,000;credit Cash,$6,000. 
B) debit Interest Expense $6,200;credit Discount on bonds payable,$200;credit Cash,$6,000. 
C) debit Interest Expense $5,800;debit Discount on bonds payable,$200;credit Cash,$6,000. 
D) debit Interest Expense $6,200;credit Cash,$6,200.

Question 7

A mortgage is a secured note because the building will serve as collateral.

Accepted Answer

A) True 
 B)False

Question 8

If a bond's stated rate of interest is equal to the market rate of interest,the bond will be issued at:

Accepted Answer

A) a discount. 
B) par. 
C) a premium. 
D) maturity value. 
A) a discount. 
B) par. 
C) a premium. 
D) maturity value.

Question 9

The percentage of a company's total assets that it would take to pay off all of the company's liabilities is called the debt ratio.

Accepted Answer

A) True 
 B)False

Question 10

On January 1,Greene Autos signed a $210,000,6%,30-year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year.The journal entry to record the second semiannual payment would be (round interest calculation to the nearest dollar)to:

Accepted Answer

A) debit Interest Expense,$6,261;debit Mortgage Payable,$1,324;credit Cash,$7,585. 
B) debit Mortgage Payable,$7,585;credit Cash,$7,585. 
C) debit Interest Expense,$6,261;debit Mortgage expense,$1,324;credit Cash,$7,585. 
D) debit Interest Expense,$1,324;debit Mortgage Payable,$6,261;credit Cash,$7,585. 
A) debit Interest Expense,$6,261;debit Mortgage Payable,$1,324;credit Cash,$7,585. 
B) debit Mortgage Payable,$7,585;credit Cash,$7,585. 
C) debit Interest Expense,$6,261;debit Mortgage expense,$1,324;credit Cash,$7,585. 
D) debit Interest Expense,$1,324;debit Mortgage Payable,$6,261;credit Cash,$7,585.

Question 11

Sydney earns $15 per hour and works 40 hours a week.Last week she worked 44 hours;given that her company pays time and a half for overtime-what is Sydney's gross pay for the week?

Accepted Answer

A) $600 
B) $660 
C) $690 
D) $720 
A) $600 
B) $660 
C) $690 
D) $720

Question 12

On January 1,Clive Corporation signed a $175,000,8%,30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year.The journal entry to record the second semiannual payment would be (round interest calculation to the nearest dollar)to:

Accepted Answer

A) debit Interest Expense,$6,971;debit Mortgage expense,$764;credit Cash,$7,735. 
B) debit Interest Expense,$764;debit Mortgage Payable,$6,971;credit Cash,$7,735. 
C) debit Interest Expense,$6,971;debit Mortgage Payable,$764;credit Cash,$7,735. 
D) debit Mortgage Payable,$7,735;credit Cash,$7,735. 
A) debit Interest Expense,$6,971;debit Mortgage expense,$764;credit Cash,$7,735. 
B) debit Interest Expense,$764;debit Mortgage Payable,$6,971;credit Cash,$7,735. 
C) debit Interest Expense,$6,971;debit Mortgage Payable,$764;credit Cash,$7,735. 
D) debit Mortgage Payable,$7,735;credit Cash,$7,735.

Question 13

Most single individuals will claim:

Accepted Answer

A) 0 allowances. 
B) 0 or 1 allowances. 
C) 2 allowances. 
D) more than 2 allowances. 
A) 0 allowances. 
B) 0 or 1 allowances. 
C) 2 allowances. 
D) more than 2 allowances.

Question 14

Which are generally paid for exceptional performance?

Accepted Answer

A) Salaries 
B) Wages 
C) Bonuses 
D) Commissions 
A) Salaries 
B) Wages 
C) Bonuses 
D) Commissions

Question 15

With regard to long-term debt,collateral represents?

Accepted Answer

A) A long-term note payable secured with real estate 
B) A guarantee that a product is free from defect 
C) Assets pledged to secure repayment of a loan 
D) A long-term interest bearing note payable 
A) A long-term note payable secured with real estate 
B) A guarantee that a product is free from defect 
C) Assets pledged to secure repayment of a loan 
D) A long-term interest bearing note payable

Question 16

Bonds that may be retired at a prearranged price are called:

Accepted Answer

A) convertible bonds. 
B) term bonds. 
C) secured bonds. 
D) callable bonds. 
A) convertible bonds. 
B) term bonds. 
C) secured bonds. 
D) callable bonds.

Question 17

A 12-month,8% note dated August 1,2013 for $5,000 would have accrued interest payable on December 31,2013 of $166.67.

Accepted Answer

A) True 
 B)False

Question 18

Both the formulas for current ratio and debt ratio use current liabilities in the computation.

Accepted Answer

A) True 
 B)False

Question 19

Ronaldo earns $20 per hour and works 40 hours a week.Last week he worked 45 hours;given that his company pays time and a half for overtime-what is Ronaldo's gross pay for the week?

Accepted Answer

A) $800 
B) $850 
C) $900 
D) $950 
A) $800 
B) $850 
C) $900 
D) $950

Question 20

A major difference between Accounts Payable and Notes Payable is that:

Accepted Answer

A) only Accounts Payable are classified as current assets. 
B) Notes Payable are more formal than Accounts Payable. 
C) only Notes Payable charge interest. 
D) Notes Payable are only long-term assets. 
A) only Accounts Payable are classified as current assets. 
B) Notes Payable are more formal than Accounts Payable. 
C) only Notes Payable charge interest. 
D) Notes Payable are only long-term assets.

Warranty expense must be estimated and matched to revenues.

A known liability is always classified as a current liability.

Northwest Electric had cash sales for the month totaling $73,200.Northwest offers a 6-month warranty on its services.If Northwest estimates warranty claims will equal 2% of sales,the journal entry to record the estimated warranty expense for the month is:

The largest portion of Accounts Payable for most merchandising companies is related to the purchase of inventory on account.

The lower the number of withholdings claimed on a W-4,the:

$200,000 of 6%,25-year bonds were sold for $190,000 on January 1.The bonds require semiannual interest payments on June 30 and December 31.The entry to record the June 30 interest payment on the bonds would be to:

A mortgage is a secured note because the building will serve as collateral.

If a bond's stated rate of interest is equal to the market rate of interest,the bond will be issued at:

The percentage of a company's total assets that it would take to pay off all of the company's liabilities is called the debt ratio.

On January 1,Greene Autos signed a $210,000,6%,30-year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year.The journal entry to record the second semiannual payment would be (round interest calculation to the nearest dollar)to:

Sydney earns $15 per hour and works 40 hours a week.Last week she worked 44 hours;given that her company pays time and a half for overtime-what is Sydney's gross pay for the week?

On January 1,Clive Corporation signed a $175,000,8%,30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year.The journal entry to record the second semiannual payment would be (round interest calculation to the nearest dollar)to:

Most single individuals will claim:

Which are generally paid for exceptional performance?

With regard to long-term debt,collateral represents?

Bonds that may be retired at a prearranged price are called:

A 12-month,8% note dated August 1,2013 for $5,000 would have accrued interest payable on December 31,2013 of $166.67.

Both the formulas for current ratio and debt ratio use current liabilities in the computation.

Ronaldo earns $20 per hour and works 40 hours a week.Last week he worked 45 hours;given that his company pays time and a half for overtime-what is Ronaldo's gross pay for the week?

A major difference between Accounts Payable and Notes Payable is that:

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

Exam 9: Current Liabilities and Long-Term Debt

Warranty expense must be estimated and matched to revenues.

A known liability is always classified as a current liability.

Northwest Electric had cash sales for the month totaling $73,200.Northwest offers a 6-month warranty on its services.If Northwest estimates warranty claims will equal 2% of sales,the journal entry to record the estimated warranty expense for the month is:

The largest portion of Accounts Payable for most merchandising companies is related to the purchase of inventory on account.

The lower the number of withholdings claimed on a W-4,the:

$200,000 of 6%,25-year bonds were sold for $190,000 on January 1.The bonds require semiannual interest payments on June 30 and December 31.The entry to record the June 30 interest payment on the bonds would be to:

A mortgage is a secured note because the building will serve as collateral.

If a bond's stated rate of interest is equal to the market rate of interest,the bond will be issued at:

The percentage of a company's total assets that it would take to pay off all of the company's liabilities is called the debt ratio.

On January 1,Greene Autos signed a $210,000,6%,30-year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year.The journal entry to record the second semiannual payment would be (round interest calculation to the nearest dollar)to:

Sydney earns $15 per hour and works 40 hours a week.Last week she worked 44 hours;given that her company pays time and a half for overtime-what is Sydney's gross pay for the week?

On January 1,Clive Corporation signed a $175,000,8%,30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year.The journal entry to record the second semiannual payment would be (round interest calculation to the nearest dollar)to:

Most single individuals will claim:

Which are generally paid for exceptional performance?

With regard to long-term debt,collateral represents?

Bonds that may be retired at a prearranged price are called:

A 12-month,8% note dated August 1,2013 for $5,000 would have accrued interest payable on December 31,2013 of $166.67.

Both the formulas for current ratio and debt ratio use current liabilities in the computation.

Ronaldo earns $20 per hour and works 40 hours a week.Last week he worked 45 hours;given that his company pays time and a half for overtime-what is Ronaldo's gross pay for the week?

A major difference between Accounts Payable and Notes Payable is that:

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