maturing currently, which is to be paid with cash in a sinking maturing currently, which is to be retired with proceeds from a urrenty, which is to be converted into common stock a. A long-term debt b. A long-term debt fund new debt issue None of these answers are correct d. balance should be classified 15. Among the short-term obligations of Larsen Company as of December 31, the n payable totaling $250,000 with the Dennison National Bank. These sheet date, are notes are 90-day notes, renewable for another 90-day period These notes on the balance sheet of Larsen Company as a. Current liabilities b. Deferred charges c Long-term liabilities d. Intermediate debt to bankers? 16. Why is the liability section of the balance sheet of primary importanoe a. To evaluate the entity's credit quality b, To assist in understanding the entity's liquidity c. To better understand sources of repayment d. To evaluate operating efficiency 17. Greeson Corp. signed a three-month, zero-interest-bearing note on November 1, 2017 for the purchase of $500,000 of inventory. The face value of the note was $507,800. Greeson used a "Discount of Note Payable" account to initially record the note. Assuming that the discount will be amortized equally over the 3-month period and that there was no adjusting entry made for November, the adjusting entry made at December 31, 2017 will include a a. Debit to Discount on Note Payable for $2,600. b. Debit to Interest Expense for $5,200 C. Credit to Discount on Note Payable for S2.600. d. Credit to Interest Expense for $5,200. 18. Slack Inc. borrowed $400,000 on April 1 . The note requires interest at 12% and principal a. To be paid in one year. How much interest is recognized for the period from April 1 to December 31? b. $0 $48,000. d. $32,000 e. $36,000. 19. Bargain Surplus made cash sales during the month of October of $375,000 are subject to a 6% sales tax that was also collected which of the f included in the summary journal entry to reflect the sale transactions? es be a. Debit Accounts Receivable for $375,000 b. Credit Sales Taxes Payable for $21,226. c. Credit Sales Revenue for $347,483. d. Credit Sales Taxes Payable for $22,500. What does the current ratio inform you about a company? a. The extent of slow-moving inventories