Question 1 (al) [10 Marks Choose the correct among the 4 available options next to each of the following 10 ite Which of the following may be a current liability? (1) a. b. C. Withheld Income Taxes Deposits Received from Customers Unearned Revenue d. All of these answers are correct. The ratio of current assets to current liabilities is called the (2) a. b. c. d. (3) current ratio. acid-test ratio. current asset turnover ratio current liability turnover ratio. Which of the following is not considered a characteristic of a liability a. b. C. d. (4) (5) Present obligation. Arises from past events. Results in an outflow of resources. Liquidation is reasonably expected to require use of existing resourd classified as current assets. Each of the following are included in both the current ratio and the ac test ratio except: a. b. c. d. cash short-term investments. net receivables. inventory Glaus Corp. signed a three-month, zero-interest-bearing $152,205 no on November 1, 2015 for the purchase of $150,000 of inventory. T adjusting entry made at December 31, 2015 will include a: debit to Note Payable for $735. a. b. debit to Interest Expense for $1,470. C. credit to Note Payable for $735. d. (6) (7) credit to Interest Expense for $1,470. Vista newspapers sold 4,000 of annual subscriptions at $125 each on September 1. How much unearned revenue will exist as of December 31? a. b. c. d. $0. $333,333. $166,667. $500,000. The interest rate written in the terms of the bond indenture is known as the a. coupon rate only. b. nominal rate only. C. stated rate only. d. (8) a. (9) coupon rate, nominal rate, or stated rate. The rate of interest actually earned by bondholders is called the: stated rate only. b. yield rate only. C. d. effective rate only. effective, yield or market rate. On January 1, 2015, Ellison Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. The present value of the principal is: $534,000. a.