Current Liabilities, Accounting

Current Liabilities

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

Question: To be classified as a current liability, a debt must be expected to be paid:

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 ?

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:

Question: Working capital is calculated as:

Question: A contingent liability should be recorded in the accounts when:

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?