1. The time period for classifying a liability as current is one year or the operating cycle. whichever is a. longer. b. shorter c. probable. d. possible. 2. Ong Imports borrows W88,500 (amounts in thousands) on September 1, 2020, from Seoul City Bank by signing an W88,500, 12%, one-year note. What is the accrued interest at December 31, 20207 a. W2.655. b. W3.540. c. W4,425. d. W10,620. 3. Becky Sherrick Company has total proceeds from sales of $4,515, if the proceeds include sales taxes of 5%, the amount to be credited to Sales Revenue is: a. $4,000 b. $4.300. c. $4,289.25 d. No correct answer given. 4. A provision should be recorded in the accounts when: a. it is probable the cash outflow will happen, but the amount cannot be reliably estimated b. it is possible the cash outflow will happen, and the amount can be reliably estimated. c. it is probable the cash outflow will happen, and the amount can be reliably estimated. d. it is possible the contingency will happen, but the amount cannot be reliably estimated 5. At December 31, Beijing Supply prepares an adjusting entry for a product warranty contract. Which of the following accounts is/are included in the entry? a. Miscellaneous Expense. b. Warranty Expense. c. Repair Parts d. Both (a) and (b) 6. Which of the following is usually not an accrued liability? a. Interest payable b. Wages payable c. Taxes payable d. Notes payable 7. All of the following are reported as current liabilities except a. accounts payable b. bonds payable c. notes payable. d. uneamed revenues. 8. Which of the following is usually not an accrued liability? a. Interest payable b. Wages payable c. Taxes payable d. Notes payable 9. Employee payroll deductions include each of the following except a. union dues. b. income taxes. c. Social Security taxes. d. All of these are payroll deductions.