Question 1

At December 31,2012,an amount due on December 31,2013,would be classified as a(n)___________________________ liability.

Accepted Answer

The answer of At December 31,2012,an amount due on December...

Question 2

Current liabilities are defined as those liabilities which will be satisfied

Accepted Answer

A) by the end of the operating cycle. 
B) within one year. 
C) within one year or within the operating cycle,whichever is longer. 
D) within one year or within the operating cycle,whichever is shorter. 
A) by the end of the operating cycle. 
B) within one year. 
C) within one year or within the operating cycle,whichever is longer. 
D) within one year or within the operating cycle,whichever is shorter.

Question 3

What are examples of accounts that might be classified as accrued liabilities in the current liabilities section of the balance sheet?

Accepted Answer

Examples of accounts that might be class

Question 4

Judge Inc.issues numerous discount coupons throughout the year.A balance in the Estimated Liability for Coupon Redemption

Accepted Answer

A) indicates an error had been made in posting. 
B) should equal the same amount of coupons redeemed. 
C) is the amount of outstanding coupons it expects to be redeemed. 
D) indicates that more coupons were redeemed than estimated. 
A) indicates an error had been made in posting. 
B) should equal the same amount of coupons redeemed. 
C) is the amount of outstanding coupons it expects to be redeemed. 
D) indicates that more coupons were redeemed than estimated.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When a liability is accrued,the account debited in the transaction is a stockholders' equity account.

Accepted Answer

A) True 
 B)False

Question 7

Each of the following situations involves the use of discounts:
1.How much discount may Mallory Inc.take in each of the following transactions?
What was the annualized interest rate?
a.Mallory purchases inventory costing $970,terms 3/10,n/40.
b.Mallory purchases new office furniture costing $2,100,terms 2/10,n/30.
2.Calculate the discount rate that Mallory received in each of these transactions.
a.Mallory purchased office supplies costing $450 and paid within the discount period with a check for $425.
b.Mallory purchased merchandise for $1,900.It paid within the discount period with a check for $1,870.

Accepted Answer

1.a.Purchase Price ´ Discount Rate = Dis

Question 8

The classification of current liabilities is closely tied to the concept of _____________________.

Accepted Answer

The answer of The classification of current liabilities is closely...

Question 9

All of the following statements are true except:

Accepted Answer

A) The threshold for recording items as liabilities is a lower under IFRS than under U.S.GAAP. 
B) The threshold for recording items as liabilities is a lower under U.S.GAAP than under IFRS. 
C) IFRS requires a liability to be recorded as a present value amount. 
D) Under U.S.GAAP,a contingent item should be recorded as a liability if the loss or outflow is probable and can be reasonably estimated. 
A) The threshold for recording items as liabilities is a lower under IFRS than under U.S.GAAP. 
B) The threshold for recording items as liabilities is a lower under U.S.GAAP than under IFRS. 
C) IFRS requires a liability to be recorded as a present value amount. 
D) Under U.S.GAAP,a contingent item should be recorded as a liability if the loss or outflow is probable and can be reasonably estimated.

Question 10

An amount that has been incurred as an expense,but has not yet been paid should be considered an accrued liability.

Accepted Answer

A) True 
 B)False

Question 11

A company has $8,000 in cash,$9,250 in accounts receivable,and $19,500 in inventory.If current liabilities are $14,350,then the quick ratio would be

Accepted Answer

A) 5.0 to 1 
B) 2.6 to 1 
C) 2.0 to 1 
D) 1.2 to 1 
A) 5.0 to 1 
B) 2.6 to 1 
C) 2.0 to 1 
D) 1.2 to 1

Question 12

Terms of 2/10,n30 mean that if the discount is not taken,full payment is due within ___________________________ days.

Accepted Answer

The answer of Terms of 2/10,n30 mean that if the...

Question 13

A note payable that is due in six months is a current liability.

Accepted Answer

A) True 
 B)False

Question 14

$2,000 invested today at 12% with compound interest will yield $2,480 in 2 years.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements regarding the inclusion of liabilities on the statement of cash flows is true?

Accepted Answer

A) All current liabilities affect the operating activities section. 
B) Long-term liabilities generally affect the investing activities section. 
C) A decrease in a current liability from the beginning to the end of the year is accompanied by a decrease of cash. 
D) A decrease in a current liability from the beginning to the end of the year is accompanied by an inflow of cash. 
A) All current liabilities affect the operating activities section. 
B) Long-term liabilities generally affect the investing activities section. 
C) A decrease in a current liability from the beginning to the end of the year is accompanied by a decrease of cash. 
D) A decrease in a current liability from the beginning to the end of the year is accompanied by an inflow of cash.

Question 16

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 interest is compounded annually,the total amount of interest on an $18,000 note payable for 4 years at 10% is

Accepted Answer

A) $5,706 
B) $7,200 
C) $8,352 
D) $8,500 
A) $5,706 
B) $7,200 
C) $8,352 
D) $8,500

Question 17

What is the difference between simple interest and compound interest? Is the amount of interest higher or lower when the interest is simple rather than compound?

Accepted Answer

Simple interest is calculated on the bal

Question 18

In the statement of cash flows,an increase in a current liability will appear as an increase in the Financing category.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A company gives a two-year warranty for its product.The estimated liability for product warranties is a current liability.

Accepted Answer

A) True 
 B)False

At December 31,2012,an amount due on December 31,2013,would be classified as a(n)___________________________ liability.

Current liabilities are defined as those liabilities which will be satisfied

What are examples of accounts that might be classified as accrued liabilities in the current liabilities section of the balance sheet?

Judge Inc.issues numerous discount coupons throughout the year.A balance in the Estimated Liability for Coupon Redemption

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

When a liability is accrued,the account debited in the transaction is a stockholders' equity account.

The classification of current liabilities is closely tied to the concept of _____________________.

All of the following statements are true except:

An amount that has been incurred as an expense,but has not yet been paid should be considered an accrued liability.

A company has $8,000 in cash,$9,250 in accounts receivable,and $19,500 in inventory.If current liabilities are $14,350,then the quick ratio would be

Terms of 2/10,n30 mean that if the discount is not taken,full payment is due within ___________________________ days.

A note payable that is due in six months is a current liability.

$2,000 invested today at 12% with compound interest will yield $2,480 in 2 years.

Which of the following statements regarding the inclusion of liabilities on the statement of cash flows is true?

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 interest is compounded annually,the total amount of interest on an $18,000 note payable for 4 years at 10% is

What is the difference between simple interest and compound interest? Is the amount of interest higher or lower when the interest is simple rather than compound?

In the statement of cash flows,an increase in a current liability will appear as an increase in the Financing category.

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

A company gives a two-year warranty for its product.The estimated liability for product warranties is a current liability.

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

International Financial Reporting Standards

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Exam 9: Current Liabilities, contingencies, and the Time Value of Money

At December 31,2012,an amount due on December 31,2013,would be classified as a(n)___________________________ liability.

Current liabilities are defined as those liabilities which will be satisfied

What are examples of accounts that might be classified as accrued liabilities in the current liabilities section of the balance sheet?

Judge Inc.issues numerous discount coupons throughout the year.A balance in the Estimated Liability for Coupon Redemption

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

When a liability is accrued,the account debited in the transaction is a stockholders' equity account.

The classification of current liabilities is closely tied to the concept of _____________________.

All of the following statements are true except:

An amount that has been incurred as an expense,but has not yet been paid should be considered an accrued liability.

A company has $8,000 in cash,$9,250 in accounts receivable,and $19,500 in inventory.If current liabilities are $14,350,then the quick ratio would be

Terms of 2/10,n30 mean that if the discount is not taken,full payment is due within ___________________________ days.

A note payable that is due in six months is a current liability.

$2,000 invested today at 12% with compound interest will yield $2,480 in 2 years.

Which of the following statements regarding the inclusion of liabilities on the statement of cash flows is true?

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 interest is compounded annually,the total amount of interest on an $18,000 note payable for 4 years at 10% is

What is the difference between simple interest and compound interest? Is the amount of interest higher or lower when the interest is simple rather than compound?

In the statement of cash flows,an increase in a current liability will appear as an increase in the Financing category.

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

A company gives a two-year warranty for its product.The estimated liability for product warranties is a current liability.

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

International Financial Reporting Standards

Filters