Matching
Match each item to the appropriate effect on liabilities You may use each choice more than once or not at all. In some cases, two effects are correct.
Premises:
Purchased supplies on account.
Paid accounts payable.
Issued a $1,000 short-term note payable for $970.
Amortized the discount of the short-term note payable.
A portion of long-term debt is due next year.
Declared cash dividends to stockholders.
Paid the cash dividend previously declared.
Received money from customers prior to delivery of the product to the customer.
Delivered products to a customer who previously paid for that product.
Collected sales tax on behalf of the state government.
Accrued payroll taxes that the firm has to pay to the federal government within three months.
Accrued a bonus amounting to 5% on reported income to the CEO.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is remote.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is reasonably possible.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is highly probable.
Accrued warranty expense.
Responses:
Decrease current liabilities
Increase current liabilities
No effect on recorded current liabilities
Accrued contingent liability
Contingent liability disclosed in the notes only
Correct Answer:
Premises:
Responses:
Purchased supplies on account.
Paid accounts payable.
Issued a $1,000 short-term note payable for $970.
Amortized the discount of the short-term note payable.
A portion of long-term debt is due next year.
Declared cash dividends to stockholders.
Paid the cash dividend previously declared.
Received money from customers prior to delivery of the product to the customer.
Delivered products to a customer who previously paid for that product.
Collected sales tax on behalf of the state government.
Accrued payroll taxes that the firm has to pay to the federal government within three months.
Accrued a bonus amounting to 5% on reported income to the CEO.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is remote.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is reasonably possible.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is highly probable.
Accrued warranty expense.
Premises:
Purchased supplies on account.
Paid accounts payable.
Issued a $1,000 short-term note payable for $970.
Amortized the discount of the short-term note payable.
A portion of long-term debt is due next year.
Declared cash dividends to stockholders.
Paid the cash dividend previously declared.
Received money from customers prior to delivery of the product to the customer.
Delivered products to a customer who previously paid for that product.
Collected sales tax on behalf of the state government.
Accrued payroll taxes that the firm has to pay to the federal government within three months.
Accrued a bonus amounting to 5% on reported income to the CEO.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is remote.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is reasonably possible.
In a lawsuit filed against the firm, counsel indicates that the potential $10,000 loss is highly probable.
Accrued warranty expense.
Responses:
Related Questions
Q57: In addition to recognizing income tax expense,
Q58: Collecting sales taxes from customers always<br>A)decreases net
Q59: One of Tonic Corp's employees invented a
Q60: The following information was taken from
Q61: If a contingent loss which is expected
Q63: On January 1 and December 31, Warranty
Q64: Identify two different third-party collections and explain
Q65: On December 31, 2017, Cocoa Incorporated had
Q66: Unearned revenue typically arises because<br>A)cash is received
Q67: Farley Incorporated instituted a defined benefit pension