Current Liabilities
 
  1. Question: The time period for classifying a liability as current is one year or the operating cycle, whichever is:

    A
    longer.

    B
    shorter.

    C
    probable.

    D
    possible.

    Note: Not available
    1. Report
  2. Question: To be classified as a current liability, a debt must be expected to be paid:

    A
    out of existing current assets.

    B
    by creating other current assets.

    C
    within 2 years.

    D
    both (a) and (b).

    Note: Not available
    1. Report
  3. Question: Maggie Sharrer Company borrows $88,500 on September 1,2002 from Sandwich State Bank by signing an $88,500, 12%, one-year note. What is the accrued interest at December 31,2002 ?

    A
    $2655

    B
    $3540

    C
    $4425

    D
    $10620

    Note: Not available
    1. Report
  4. Question: Rhodes Company has total proceeds from sales of $4515. If the proceeds include sales taxes of 5%, the amount to be credited to Sales is:

    A
    $4000

    B
    $4300

    C
    $4,289.25

    D
    No correct answer given.

    Note: Not available
    1. Report
  5. Question: Working capital is calculated as:

    A
    current assets minus current liabilities.

    B
    total assets minus total liabilities.

    C
    long-term liabilities minus current liabilities.

    D
    both (b) and (c)

    Note: Not available
    1. Report
  6. Question: A contingent liability should be recorded in the accounts when:

    A
    it is probable the contingency will happen, but the amount cannot be reasonably estimated.

    B
    it is reasonably possible the contingency will happen, and the amount can be reasonable estimated.

    C
    it is probable the contingency will happen and the amount can be reasonable estimated.

    D
    it is reasonably possible the contingency will happen but the amount cannot be reasonably estimated.

    Note: Not available
    1. Report
  7. Question: At December 31, Hanes Company prepares an adjusting entry for a product warranty contract. Which of the following accounts is/are included in the entry?

    A
    Miscellaneous Expense.

    B
    Estimated warranty Liability.

    C
    Repair Parts/Wages Payable.

    D
    Both (a) and (b)

    Note: Not available
    1. Report
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