15. Of the following items, the only one which should not be classified as a current liability is A. mortgages payable B. sales taxes payable C. unearned revenues D. current maturities of long-term debt. 16. When is a contingent liability recorded? A. When the future events will possibly occur and the amount can be reasonably estimated B. When the amount can be reasonably estimated C. When the future events are probable to occur and the amount can be reasonably estimated D. When the future events are probable to occur 17. Waterway Surplus made cash sales during the month of October of $382,000. The sales are subject to a 6% sales tax that was also collected, which of the following would be included in the summary journal entry to reflect the sale transactions? A. Credit Sales Revenue for $354,483 B. Credit Sales Taxes Payable for $22,920 C. Debit Accounts Receivable for $382,000 D. Credit Sales Taxes Payable for $21,622 18. on September 30, World Co. borrowed $1,000,000 on a 9% note payable. world paid the first of four quarterly payments of $264,200 when due on December 30 In its income statement for the year, what amount should World report as interest expense? B. $30,000 C. $14,200 D. $22,500 19. Federal income taxes withheld by the employer on behalf of the employee are recorded as A. revenues B. unearned revenues receivables. D. current liabilities 20. Which of the following items is NOT a main financial statement? A. Income Statement B. Bank Statement C. Balance Sheet D. Statement of Cash Flows 21. Reich, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that A. no necessary relationship exists between the two rates. B. the effective yield or market rate of interest exceeded the stated (nominal) rate. C. the stated rate of interest exceeded the market rate D. the market and nominal rates were the same