88.Which of the following descriptions would not fit the definition of a liability?
a.
Present obligation for future payment.
b.
Result of past transaction.
c.
Obligation to deliver services already paid for.
d.
Future obligation for future salary payments.
89.Usually, failure to record a liability means failure to record a(n)
a.
revenue.
b.
asset.
c.
expense.
d.
note.
90.Which of the following does not represent a liability?
a.
An obligation to pay for goods purchased, payable one year after purchase.
b.
An obligation for future purchases of goods.
c.
Interest that has accrued on a bank loan.
d.
An obligation for estimated income taxes payable.
91.The payables turnover is measured
a.
as a percentage.
b.
in times.
c.
in dollars.
d.
in days.
92.To find the days’ payable,
a.
divide the payables turnover by 365.
b.
divide 365 by the payables turnover.
c.
multiply the payables turnover by 365.
d.
subtract 365 from the payables turnover.
93.Sales Tax Payable is an example of a(n)
a.
definitely determinable liability.
b.
estimated liability.
c.
trade liability.
d.
contingent liability.
94.A company receives $100, of which $4 is for sales tax and $6 is for excise tax. The entry to record the sale would include a
a.
debit to Sales for $100.
b.
debit to Excise Tax Expense for $6.
c.
debit to Cash for $90.
d.
credit to Sales Tax Payable for $4.
95.All of the following are classified as definitely determinable liabilities except
a.
sales tax payable.
b.
estimated property taxes payable.
c.
the current portion of long-term debt.
d.
unearned revenue.
96.A company receives $180 for a sale, of which $10 is for sales tax. The entry to record the sale would include a
a.
debit to Cash for $170.
b.
credit to Sales Tax Payable for $10.
c.
credit to Sales for $180.
d.
debit to Sales Tax Expense for $10.
97.Use this information to answer the following question.
The transactions below pertain to Broyer Company, whose fiscal year ends September 30.
Sept.
10
Received cash for a 90-day, 12 percent, $25,000 note payable. Interest is in addition to the face value.
30
Made end-of-year adjusting entry to accrue interest expense.
The entry to record the September 10 transaction (amounts rounded) would include a
a.
debit to Cash for $24,260.
b.
credit to Notes Payable for $740.
c.
debit to Cash for $25,000.
d.
credit to Notes Payable for $24,260.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more