3.A note payable is recorded at present value if it is a/an

Group of answer choices

A. Interest-bearing note, whether short-term or long-term.

B. Zero interest bearing note payable within one year

C. Zero interest-bearing note payable beyond one-year

D. Payable within one year

6.From a liquidity standpoint it is more desirable for a firm to have current

Group of answer choices

A. assets exceeding current liabilities.

B. assets equal to current liabilities.

C. liabilities exceeding current assets.

D. liabilities exceeding non-current liabilities.

7.Which of the following may be a current liability?

Group of answer choices

A. All of these answers are correct

B. Unearned revenue

C. Income tax withheld from employees

D. Deposits received from customers

8.Unearned revenue should be recorded as income on the Income Statement.

Group of answer choices

A. True

B. False

9.What does the current ratio inform you about a company?

Group of answer choices

A. The current asset available in the current operation

B. The company's solvency

C. The company's profitability

D. The company's liquidity

10.Examples of current liabilities include all of the following except

Group of answer choices

A. Unearned income

B. Sales tax payable

C. Unpaid dividends

D. Long-term mortgage

11.A provision differs from other liabilities in that there is greater uncertainty about the timing and amount of settlement.

Group of answer choices

A. True

B. False

14.On January 1, Dion Inc. issued 5,000,000, 9% bonds for 4,695,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Dion uses the effective-interest method of amortizing bond discount.

What amount should be reported as bonds payable at the end of the first year?_______________________

15.Notes Payable - Interest bearing note. On January 1, 2020, Barney Corporation acquired a tract of land for 10,000,000. Barney Corporation paid 2,000,000 and signed a 3-year promissory note for the balance plus 10% interest compounded annually. The note matures on January 1, 2023.Determine the total amount to be paid on the maturity date of the note or maturity value of the note.____________________________

16.On January 1, 2020, Gillian Co. issued its 10% bonds at face amount of 3,000,000, which will mature on January 1, 2025. The bonds were issued for 3,405,000 to yield 8%, resulting in bond premium of 405,000. Gillian uses the effective-interest method

of amortizing bond premium. Interest is payable annually on December 31.

What is the issue price of the bonds?_____________________

17.On January 1, Dion Inc. issued 5,000,000, 9% bonds for 4,695,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Dion uses the effective-interest method of amortizing bond discount.

How much is the interest expense for year?____________

18.Warranties. In the calendar year 2020, Golden Enterprises sold 4,000 units of its product for 10,000 each. The selling price included a one-year warranty on parts. It is expected that 4% of the units would be defective and that repair costs would average 2,000 per unit. In 2020, warranty contracts were honoured on 80 units of product for a total cost of 160,000. The Provision for Warranty account had a balance of 220,000 at January 1, 2020.

What amount should Golden accrue on December 31, 2020 for estimated warranty costs?_______________________________

19.Premiums. Regal Studios, in an effort to promote the release of their new movie "Ninjas from Space," began a national sales promotion campaign. Two coupons from specially marked boxes (one coupon in each box) of "Sugar Charms" cereal are redeemable for one ticket to the show. Tickets cost Regal 15 each. Regal estimates that 40 percent of the coupons will be redeemed. At the end of 2020, the following information is available:

Boxes of cereal sold640,000

Movie tickets purchased by Regal140,000

Coupons redeemed250,000

What is the estimated liability for premium claims outstanding at December 31, 2020?_________________________