Exam 9: Current Liabilities and Fair Value Accounting

A company wishes to make annual contributions into a fund intended to retire $400,000 in debt five years from now.The amount to contribute each year equals $400,000

The following information is known for Alcorn Company for the year ended December 31: Compute Alcorn Company's days' payable for the current year (round to two decimal places).

When compound interest is used,interest accumulates quicker than when simple interest is used.

When a business sells an item and collects a state sales tax on it,a current liability to the state arises.

Vacation pay is charged properly as an expense in the month in which the employee earns the vacation pay.

Which of the following is both an estimated liability and a contingent liability?

Explain why the cost of employing someone is more than just the wage or salary paid to the employee.

Unearned revenue is an example of a definitely determinable liability.

A company sells merchandise on a deferred payment plan,ultimately receiving $5,000 on the account receivable.On the payment date,the company would

Which of the following typically would not be done to satisfy a current liability?

Failure to record a liability probably will

Payroll Taxes and Benefits Expense includes all of the following except

Promotional costs,such as coupons and rebates,are usually not recorded as an expense with a related liability.

Use this information to answer the following question. Baker Company has the following information for the pay period of January 1-15.Payment occurs on January 20. Salaries Payable would be recorded for

A liability must always be classified as long-term if it is due in more than one year.

An ordinary annuity is a series of equal payments made at the end of equal intervals of time.

A company receives $200 for a sale,of which $8 is for sales tax and $12 is for excise tax.The journal entry to record the sale is:

Lines of credit from the bank must be disclosed in the financial statements or in the notes.

Only the used portion of a line of credit is recognized as a liability.

Use this information to answer the following question. The following totals for the month of July were taken from the payroll register of Greene Company: The amount of liabilities relating to payroll,other than Salaries Payable,is