Question 1

When a borrower receives the face amount of a discounted note less discount,this amount is known as:

Accepted Answer

A)  the note proceeds
B)  the note discount
C)  the note deferred interest
D)  the note principalE) All of the above
F) B) and C)

Question 2

On January 5,2014,Garrett Company,a calendar-year company,issued $1,000,000 of notes payable,of which $200,000 is due on January 1 for each of the next five years.The proper balance sheet presentation on December 31,2014,is

Accepted Answer

A)  Current Liabilities,$1,000,000.
B)  Current Liabilities,$200,000;Long-term Debt,$800,000.
C)  Long-term Debt,$1,000,000
D)  Current Liabilities,$800,000;Long-term Debt,$200,000.E) All of the above
F) B) and C)

Question 3

The amount of money a borrower receives from the lender is called discount rate.

Accepted Answer

A) True 
 B)False

Question 4

Payroll taxes levied against employees become liabilities

Accepted Answer

A)  the first of the following month
B)  when salary is accrued
C)  when data is entered in a payroll register
D)  at the end of an accounting periodE) A) and B)
F) All of the above

Question 5

The proceeds from discounting a $20,000,60-day,note payable at 6% is $20,200.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the most desirable quick ratio?

Accepted Answer

A)  2.20
B)  1.80
C)  1.95
D)  1.50E) A) and C)
F) All of the above

Question 7

Federal unemployment taxes are paid by the employer and the employee.

Accepted Answer

A) True 
 B)False

Question 8

Quick assets include

Accepted Answer

A)  cash;cash equivalents,receivables,prepaid expenses,and inventory
B)  cash;cash equivalents,receivables,and prepaid expenses
C)  cash;cash equivalents,receivables,and inventory
D)  cash;cash equivalents,and receivablesE) All of the above
F) B) and C)

Question 9

The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is

Accepted Answer

A)  debit Salary Expense;credit Cash
B)  debit Pension Expense;credit Unfunded Pension Liability
C)  debit Pension Expense;credit Unfunded Pension Liability and Cash
D)  debit Pension Expense;credit CashE) A) and D)
F) C) and D)

Question 10

The current portion of long-term debt should

Accepted Answer

A)  be classified as a long-term liability.
B)  not be separated from the long-term portion of debt.
C)  be paid immediately.
D)  be reclassified as a current liability.E) C) and D)
F) A) and C)

Question 11

The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.

Accepted Answer

*These represent prepaid expenses and ot...

Exam 10: Current Liabilities and Payroll

On January 5,2014,Garrett Company,a calendar-year company,issued $1,000,000 of notes payable,of which $200,000 is due on January 1 for each of the next five years.The proper balance sheet presentation on December 31,2014,is

Correct Answer
verified

The amount of money a borrower receives from the lender is called discount rate.

Correct Answer
verified

When a borrower receives the face amount of a discounted note less discount,this amount is known as:

Correct Answer
verified

The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.

Correct Answer
verified
*These represent prepaid expenses and ot...
View Answer

Quick assets include

Correct Answer
verified

The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is

Correct Answer
verified

The current portion of long-term debt should

Correct Answer
verified

Which of the following is the most desirable quick ratio?

Correct Answer
verified

The proceeds from discounting a $20,000,60-day,note payable at 6% is $20,200.

Correct Answer
verified

Payroll taxes levied against employees become liabilities

Correct Answer
verified

Federal unemployment taxes are paid by the employer and the employee.

Correct Answer
verified

Exam 10: Current Liabilities and Payroll

On January 5,2014,Garrett Company,a calendar-year company,issued $1,000,000 of notes payable,of which $200,000 is due on January 1 for each of the next five years.The proper balance sheet presentation on December 31,2014,is

Correct AnswerverifiedShow Answer

The amount of money a borrower receives from the lender is called discount rate.

Correct AnswerverifiedShow Answer

When a borrower receives the face amount of a discounted note less discount,this amount is known as:

Correct AnswerverifiedShow Answer

The current assets and current liabilities for Kolbie Company and Newton Company are shown as follows at the end of 2012.

Correct Answerverified*These represent prepaid expenses and ot...View AnswerShow Answer

Quick assets include

Correct AnswerverifiedShow Answer

The journal entry a company uses to record fully funded pension rights for its salaried employees at the end of the year is

Correct AnswerverifiedShow Answer

The current portion of long-term debt should

Correct AnswerverifiedShow Answer

Which of the following is the most desirable quick ratio?

Correct AnswerverifiedShow Answer

The proceeds from discounting a $20,000,60-day,note payable at 6% is $20,200.

Correct AnswerverifiedShow Answer

Payroll taxes levied against employees become liabilities

Correct AnswerverifiedShow Answer

Federal unemployment taxes are paid by the employer and the employee.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
*These represent prepaid expenses and ot...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified