Question 1

A liability must never be classified as current if it is due in more than one year.

Accepted Answer

A) True 
 B)False

Question 2

When accounting for property taxes,which of the following accounts normally would not be credited?

Accepted Answer

A) Prepaid Property Taxes 
B) Cash 
C) Estimated Property Taxes Payable 
D) Property Taxes Expense 
A) Prepaid Property Taxes 
B) Cash 
C) Estimated Property Taxes Payable 
D) Property Taxes Expense

Question 3

Potential vacation pay should be accounted for as a commitment.

Accepted Answer

A) True 
 B)False

Question 4

Expected obligations arising from programs,such as frequent flyer miles,are usually recorded as a reduction in sales (in a contra-sales account)with a related liability.

Accepted Answer

A) True 
 B)False

Question 5

The payables turnover is measured

Accepted Answer

A) in days. 
B) as a percentage. 
C) in dollars. 
D) in times. 
A) in days. 
B) as a percentage. 
C) in dollars. 
D) in times.

Question 6

Which of the following is not a commitment?

Accepted Answer

A) Lease 
B) Construction of long-term asset 
C) Purchase agreement 
D) Guarantee of debt 
A) Lease 
B) Construction of long-term asset 
C) Purchase agreement 
D) Guarantee of debt

Question 7

Common examples of commitments are leases and purchase agreements.

Accepted Answer

A) True 
 B)False

Question 8

A company enters into a contract to purchase a certain quantity of goods from another company during the following month.At this point,would a liability exist? Explain why or why not.

Accepted Answer

A liability would not exist be

Question 9

The entry that includes a debit to Payroll Taxes and Benefits Expense also includes credits to Federal Unemployment Tax Payable and State Unemployment Tax Payable.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following phrases is not descriptive of an ordinary annuity?

Accepted Answer

A) Payments made at the beginning of equal periods of time 
B) Both present and future value can be calculated 
C) Compound interest assumed 
D) Series of equal payments 
A) Payments made at the beginning of equal periods of time 
B) Both present and future value can be calculated 
C) Compound interest assumed 
D) Series of equal payments

Question 11

Which of the following taxes is not subject to a maximum amount per employee per year?

Accepted Answer

A) State unemployment tax 
B) Federal unemployment tax 
C) Social security tax 
D) Medicare tax 
A) State unemployment tax 
B) Federal unemployment tax 
C) Social security tax 
D) Medicare tax

Question 12

Which of the following businesses most likely would have a large Unearned Revenue account balance at all times?

Accepted Answer

A) Dry cleaners 
B) Realtor 
C) Magazine publisher 
D) Department store 
A) Dry cleaners 
B) Realtor 
C) Magazine publisher 
D) Department store

Question 13

Sales Tax Payable is an example of a(n)

Accepted Answer

A) estimated liability. 
B) contingent liability. 
C) trade liability. 
D) definitely determinable liability. 
A) estimated liability. 
B) contingent liability. 
C) trade liability. 
D) definitely determinable liability.

Question 14

Social Security and Medicare taxes are borne entirely by the employee.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) $8,356. 
B) $7,496. 
C) $7,256. 
D) $8,596. 
A) $8,356. 
B) $7,496. 
C) $7,256. 
D) $8,596.

Question 16

The declaration of dividends is solely the decision of the corporation's board of directors.

Accepted Answer

A) True 
 B)False

Question 17

Gross earnings minus deductions equal take-home pay.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are classified as definitely determinable liabilities except

Accepted Answer

A) sales tax payable. 
B) estimated property tax payable. 
C) the current portion of long-term debt. 
D) unearned revenue. 
A) sales tax payable. 
B) estimated property tax payable. 
C) the current portion of long-term debt. 
D) unearned revenue.

Question 19

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

Accepted Answer

A) Use long-term assets to satisfy the liability 
B) Render a service to satisfy the liability 
C) Use current assets to satisfy the liability 
D) Take on another current liability to satisfy the liability 
A) Use long-term assets to satisfy the liability 
B) Render a service to satisfy the liability 
C) Use current assets to satisfy the liability 
D) Take on another current liability to satisfy the liability

Question 20

Liabilities generally arise from expected future transactions.

Accepted Answer

A) True 
 B)False

A liability must never be classified as current if it is due in more than one year.

When accounting for property taxes,which of the following accounts normally would not be credited?

Potential vacation pay should be accounted for as a commitment.

Expected obligations arising from programs,such as frequent flyer miles,are usually recorded as a reduction in sales (in a contra-sales account)with a related liability.

The payables turnover is measured

Which of the following is not a commitment?

Common examples of commitments are leases and purchase agreements.

A company enters into a contract to purchase a certain quantity of goods from another company during the following month.At this point,would a liability exist? Explain why or why not.

The entry that includes a debit to Payroll Taxes and Benefits Expense also includes credits to Federal Unemployment Tax Payable and State Unemployment Tax Payable.

Which of the following phrases is not descriptive of an ordinary annuity?

Which of the following taxes is not subject to a maximum amount per employee per year?

Which of the following businesses most likely would have a large Unearned Revenue account balance at all times?

Sales Tax Payable is an example of a(n)

Social Security and Medicare taxes are borne entirely by the employee.

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

The declaration of dividends is solely the decision of the corporation's board of directors.

Gross earnings minus deductions equal take-home pay.

All of the following are classified as definitely determinable liabilities except

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

Liabilities generally arise from expected future transactions.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 11: Current Liabilities and Fair Value Accounting

A liability must never be classified as current if it is due in more than one year.

When accounting for property taxes,which of the following accounts normally would not be credited?

Potential vacation pay should be accounted for as a commitment.

Expected obligations arising from programs,such as frequent flyer miles,are usually recorded as a reduction in sales (in a contra-sales account)with a related liability.

The payables turnover is measured

Which of the following is not a commitment?

Common examples of commitments are leases and purchase agreements.

A company enters into a contract to purchase a certain quantity of goods from another company during the following month.At this point,would a liability exist? Explain why or why not.

The entry that includes a debit to Payroll Taxes and Benefits Expense also includes credits to Federal Unemployment Tax Payable and State Unemployment Tax Payable.

Which of the following phrases is not descriptive of an ordinary annuity?

Which of the following taxes is not subject to a maximum amount per employee per year?

Which of the following businesses most likely would have a large Unearned Revenue account balance at all times?

Sales Tax Payable is an example of a(n)

Social Security and Medicare taxes are borne entirely by the employee.

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

The declaration of dividends is solely the decision of the corporation's board of directors.

Gross earnings minus deductions equal take-home pay.

All of the following are classified as definitely determinable liabilities except

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

Liabilities generally arise from expected future transactions.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters