Chapter 10

1. 1Liabilities are classified on the balance sheet as current or

   1. Along-term.
   2. Baccrued.
   3. Cunearned.
   4. Ddeferred
2. 2Most companies pay current liabilities

   1. Aby issuing stock.
   2. Bby creating long-term liabilities.
   3. Cout of current assets.
   4. Dby issuing interest-bearing notes payable.
3. 3A current liability is a debt that can reasonably be expected to be paid

   1. Abetween 6 months and 18 months.
   2. Bout of currently recognized revenues.
   3. Cout of cash currently on hand.
   4. Dwithin one year, or the operating cycle, whichever is longer.
4. 4Which of the following most likely would be classified as a current liability?

   1. ADividends payable
      
      
      
      
   2. BBonds payable in 5 years
   3. CMortgage payable as a single payment in 10 years
   4. DThree-year notes payable
5. 5Current liabilities are due

   1. Aut not payable for more than one year.
      
      
      
      
      
      
   2. Bbut not receivable for more than one year.
   3. Cand payable within one year.
   4. Dand receivable within one year.
6. 6Liabilities are classified as current or long-term based on their

   1. Aamount.
      
      
      
      
      
      
   2. Bdue date.
   3. Cdescription.
   4. Dpayment terms.
7. 7Which of the following is not a current liability on December 31, 2014?

   1. AA Note Payable due December 31, 2015
      
      
      
      
      
      
   2. BA lawsuit judgment to be decided on January 10, 2015
   3. CAccrued salaries payable from 2014
   4. DAn Accounts Payable due January 31, 2015
8. 8Sales taxes collected by a retailer are recorded by

   1. Acrediting Sales Tax Revenue.
      
      
      
      
      
      
   2. Bdebiting Sales Taxes Payable.
   3. Ccrediting Sales Taxes Payable.
   4. Ddebiting Sales Tax Expense.
9. 9Unearned Rent Revenue is

   1. Areported as a current liability.
      
      
      
      
      
      
      
   2. Bdebited when rent is received in advance.
   3. Ca contra account to Rent Revenue.
   4. Da revenue account.
10. 10The amount of sales tax collected by a retail store when making sales is

    1. Aa miscellaneous revenue for the store.
       
       
       
       
       
       
       
    2. Ba current liability.
    3. Cnot recorded because it is a tax paid by the customer.
    4. Drecorded as an operating expense.

11. 11The current portion of long-term debt should

    1. Abe reclassified as a current liability.
       
       
       
       
       
       
    2. Bbe classified as a long-term liability.
    3. Cnot be separated from the long-term portion of debt.
    4. Dbe paid immediately.
12. 12Sales taxes collected by a retailer from a customer are expenses

    1. Aof the government.
       
       
       
       
       
       
    2. Bof the retailer.
    3. Cof the customers.
    4. Dthat are not recognized by the retailer until they are submitted to the government.
13. 13A retailer that collects sales taxes is acting as an agent for the

    1. Achamber of commerce.
       
       
       
       
       
       
       
    2. Bcustomer.
    3. Ctaxing authority.
    4. Dwholesaler.
14. 14Sales taxes collected by a retailer are reported as

    1. Acurrent liabilities.
       
       
       
       
       
       
       
    2. Brevenues.
    3. Ccontingent liabilities.
    4. Dexpenses.
15. 15From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that

    1. Athe bondholders do not have voting rights.
       
       
       
       
       
       
    2. Binterest must be paid on a periodic basis regardless of earnings.
    3. Cbond interest is deductible for tax purposes.
    4. Dincome to stockholders may increase as a result of trading on the equity.
16. 16Secured bonds are bonds that

    1. Ahave specific assets of the issuer pledged as collateral.
       
       
       
       
       
    2. Bmature in installments
    3. Care in the possession of a bank.
    4. Dcan be converted into common stock.
17. 17A legal document that indicates the name of the issuer, the face value of the bond and such other data is called

    1. Aa bond debenture.
       
       
       
       
       
       
    2. Ba convertible bond.
    3. Ca bond certificate.
    4. Dtrading on the equity.
18. 18A company receives $176, of which $16 is for sales tax. The journal entry to record the sale would include a

    1. Adebit to Cash for $160.
       
       
       
       
       
       
    2. Bcredit to Sales Taxes Payable for $16.
    3. Cdebit to Sales Revenue for $176.
    4. Ddebit to Sales Taxes Expense for $16.
19. 19A company receives $261, of which $21 is for sales tax. The journal entry to record the sale would include a

    1. Adebit to Sales Taxes Expense for $21.
       
       
       
       
       
       
    2. Bdebit to Sales Taxes Payable for $21.
    3. Cdebit to Sales Revenue for $261.
    4. Ddebit to Cash for $261.

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Quiz am Chapter 10, erstellt von robertse10 am 11/12/2014.

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robertse10

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English

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