1. If A Company Borrows Money From A Bank And Signs An Agreement To Repay The Loan Several Years From Now, In Which Account Would The Company Report The Amount Borrowed? A) Common Stock B) Accounts Payable C) Notes Payable (Long-Term) D) Retained Earnings 2. During The Year, Pizza Company, Inc. Had $100,000 In Revenues, $40,000 In Expenses, And Paid $3,000

1. If a company borrows money from a bank and signs an agreement to repay the loan several years from now, in which account would the company report the amount borrowed? A) Common Stock B) Accounts Payable C) Notes Payable (long-term) D) Retained Earnings 2. During the year, Pizza Company, Inc. had $100,000 in revenues, $40,000 in expenses, and paid $3,000 in dividends. Net income equals: A) $63,000. B) $57,000. C) $100,000. D) $60,000. 3. ABC Company's income statement shows Service Revenue of $40,000, Salaries and Wages Expense of $25,000 and net income of $1,000. The other expenses on ABC's income statement must equal: A) $14,000. B) $15,000. C) $66,000. D) $16,000. 4. The Sweet Smell of Success Fragrance Company borrowed $60,000 from the bank to be paid back in five years and used all of the money to purchase land for a new store. Sweet Smell's balance sheet would show this as: A) $60,000 under Land and $60,000 under Notes Payable (long-term). B) $60,000 under Depreciation Expense and $60,000 under Notes Payable (long-term). C) $60,000 under Land and $60,000 under Notes Receivable (long-term). D) $60,000 under Other Assets and $60,000 under Other Liabilities. 5. The characteristic shared by all liabilities is that they: A) provide a future economic benefit. B) result in an inflow of resources to the company. C) always end in the word "payable." D) obligate the company to do something in the future.