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ADDITIONAL SD Which of the followin g describes an accrued liability? a. It is an expense that has been both incurred and pald. b. It

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ADDITIONAL SD Which of the followin g describes an accrued liability? a. It is an expense that has been both incurred and pald. b. It is an expense that has been incurred but not yet paid. c. It is an expense that has been prepaid but not yet consumed. yet to be earned. d. It is a 1iability where the cash tlow has taken place but the revenue has 2. Landseeker's accounts payable of $83 million for 2011. In 2010, cost of goods sold was $258 payable turnover ratio in 2011? 's Restaurants reported cost of goods sold of $322 million and n and accounts payable vas 972 million. What was Landseeker's accounts a. 4.23 b. 4.15 c. 4.04 d. 3.91 3. The main purpose of recording depreciation is to a. allocate the cost of a tangible asset to the periods in which its use contributes to generating revenue. b. estimate the remaining useful life of the asset c. report the asset on the balance sheet at the estimated anount for which the asset could be sold on the balance sheet date. d. estimate the current replacement cost of the asset. 4. A company decided to use the units of production method to calculate depreciation on a car to be driven by the sales manager. The amount of annual depreciation will most likely vary with the a. age of the car. b. balance in accumulated depreciation c. number of miles the car is driven. d. amount of maintenance expense incurred on the car. 5. In accounting, goodw:11 a. may be recorded whenever a company achieves a level of exceeds the industry average. b. does not need to be anmortized its value never decreases. c. may be recorded when a company purchases another business. d. must be expended in the pe goodwill are difficult to identify net income that riod it is recorded because benefits from

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