FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 10: Liabilities

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

Multiple Choice

Review LaterAdd Note

Review Later

Deferred Revenues are liabilities because:

A) no cash has changed hands.
B) goods or services have been paid for,but not yet provided to the customer.
C) the company is transferring them to another period for tax reasons.
D) the customer may someday return items purchased for a refund.

E) A) and B)
F) None of the above

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

Issuing a note payable for cash immediately results in a(n) :

A) increase in assets and an increase in liabilities.
B) decrease in assets and an increase in liabilities.
C) decrease in assets and a decrease liabilities.
D) increase in liabilities and a decrease in stockholders' equity.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

On October 1,2018,Allen Emig borrowed $306,000 from the West Coast Bank on a 6-month,6% note.Assuming no interest has been recorded yet,what is the amount of accrued interest as of December 31,2018?

The entry to record the borrowing of cash by issuing a note was recorded with a debit to Cash and a credit to Notes Receivable.The effect of recording this entry causes:

If the likelihood of a loss is reasonably possible,a contingent liability is recorded by making an appropriate journal entry.

Disco World began its business on November 1 and sold contracts to twelve students for dance lessons that day.The lessons cost $375 per person for a three-month period and the students are required to pay in advance. Assuming Disco World adjusts its accounts only at its December 31 year-end,what entry must Disco World make to account for the services provided through that date?

When bonds are retired at their maturity date,the balance in the Bonds Payable account is equal to the bond's:

Using the simplified effective-interest amortization,interest expense is calculated as:

Amortizing a bond premium will ________ the premium balance and ________ the carrying value of the bond so that when the bond matures the carrying value will ________ the face value.

Obligations due to be paid within one year or the company's operating cycle,whichever is longer,are classified as:

The law requires ________ to pay FICA taxes.

Company A has liabilities of $6,773,000 and stockholders' equity of $3,647,000 at the end of the current year,and sales revenue of $9,800,000 and net income of $899,080 for the year.Company B has assets of $1,680,000 and stockholders' equity of $978,750 at the end of the current year,and sales revenue of $1,950,000 and net income of $351,000 for the year. Required: Part a.P1P1_0.95Calculate the debt-to-assets ratio for each company.P1P1_E Part b.Identify the company that has greater financing risk and explain why.

During the year,the company recorded services provided to customers on account.What effect will this transaction have on the debt-to-assets and times interest earned ratios?

Odessa Co.has current assets of $10 million and net income of $20 million.Current liabilities total $5 million,interest expense is $4 million,and income tax expense is $6 million.What is the times interest earned ratio for this company?

If a company forgets to record the journal entry to accrue interest expense,then its net income is too ________ and its liabilities are too ________.

Bonds that are backed by a company's assets are referred to as "secured" bonds.

Selected financial information presented below was obtained from the financial statements of Terripin Industries: $\begin{array}{lr}\text { Current Assets } & \$ 80,000 \\\text { Property and Equipment, net } & 120,000 \\\text { Current Liabilities } & 90,000 \\\text { Noncurrent Liabilities } & 70,000 \\\text { Stockholder's Equity } & 40,000 \\\text { Sales Revenue } & 100,000 \\\text { Net Income } & 36,000\end{array}$ What is the debt-to-assets ratio?

Match each term with the appropriate definition.Not all definitions will be used. -Stated interest rate

The gross earnings for all employees is credited to Salaries and Wages Payable.

A negative times interest earned ratio suggests that the company: