16 What amount of current assets would appear on the balance sheet? A) S555o0 s57.500 C) $s8.00o o) s55.00o What amont of current Babilities would appear on the balance sheet? a7 A) S16.5oo B)SI5,200 C) $13,500 D) $16.700 B) Liabilities can increase the return on stockholders' equity if the interest rate paid is less than C Capital structure is the relative proportion of debt and equity financing. 18Which of the following statements is true A) Liabilities are initialy recorded at the amount of their principle plus interest. the return on assets. D) Both B and C are true. Which of the following is false? 19. A) Current liabilities are those that will be satisfied within one year or the operating cycle, whichever is longer. B) Liquidity is the ability of the company to meet its total obligations. C) Current liabilities impact a company's liquidity D) Both B and C are false interest-bearing note payable. The required adjusting entry at the end of the accounting period, December 31, 2012, would be A) Goodman Company borrowed $100,000 cash on September 1, 2012, and signed a one-year 12 % , 20 4,000 Interest expense Interest payable Interest expense Interest payable Notes payable 4,000 12,000 B) 12,000 100,000 12,000 C) Interest expense Cash Interest payable 112,000 D) 4,000 4,000 Interest expense 21.Which of the following liabilities is typically a known amount? A) Accounts payable. B) Warranty liabilities. C) Environmental restoration costs D) All of the above liability accounts' balances are known with certainty. Which of the following statements is true? 22. A) Interest ra tes are often lower in countries experiencing a recession so companies will borrow in those countries' currency. B) Corporations with foreign operations will often borrow in the foreign currency to finance those operations in order to reduce exchange rate risk c) There is no advantage to borrowing in foreign currencies unless a company has foreign operations D) Both A and B are true