1.

A typical classified balance sheet provides no information about which of the following items?

A.	To whom the company owes money

B.	For what the company owes money

C.	How much the company owes

D.	The proportion of the company's debts that will be paid in the short-term

2.

Which of the following statements is not correct?

A.	An "A" rating is the best credit rating a company can earn.

B.	Credit ratings below BB are called "junk."

C.	A credit rating agency indicates a company's ability to pay its debts on a timely basis.

D.	Standard and Poor's, Fitch, and Moody's are the names of credit rating agencies.

3.

A 6-month note is issued on November 1. If no previous accruals have been made, how many months of interest should be accrued at December 31?

A.

Six

B.

Two

C.

Four

D.

None

4.

When interest is accrued on a note payable, but not paid, the

A.	Interest Expense account is increased; the Interest Payable account is increased.

B.	Interest Expense account is decreased; the Interest Payable account is increased.

C.	Notes Payable account is increased; the Interest Payable account is increased.

D.	Interest Expense account is increased; the Interest Payable account is decreased.

5.

A company receives $95 for merchandise sold to a consumer of which $5 is for sales tax. The $5 of sales tax:

A.	increases sales revenue.

B.	increases current liabilities.

C.	increases selling expenses.

D.	is not recorded until it is forwarded to the state government.