QUESTION 13 All of the following are estimated liabilities except liability for vacation pay. payroll liabilities. product warranty liability. property tax liability. QUESTION 17 Notes payable are promissory involve debt to many creditors. are secured by real property. All of these choices. QUESTION 18 Mortgages payable are usually paid in monthly installments. have payments that include both interest on the debt and reduction in the debt. are secured by real property. All of these choices. QUESTION 19 are liabilities that arise from a contract that requires a company to make payments to its employees after they retire Deferred income taxes. Other post-retirement benefits. Capital leases Pensions QUESTION 21 If the market interest rate is lower than the face interest rate at the date of issuance, bonds will not sell until the face interest rate is adjusted. sell at face value. sell at a discount sell at a premium QUESTION 22 An unsecured bond is the same as a term bond. zero coupon bond debenture bond. bond indenture. QUESTION 27 Pelican Company issued $200,000 of 20-year, 6 percent bonds at 98 on one of its semiannual interest dates. The straight-line method of amortization is to be used. After seven years, what is the carrying value of the bonds? $196,700 $197,400 $198,600 $199,300 QUESTION 36 Under an operating lease, the lessee records which of the following? Rent expense Capital lease obligations Depreciation on the leased asset Capital lease assets QUESTION 39 The interest coverage ratio equals income before income taxes minus interest expense divided by income before income taxes. income before income taxes minus interest expense divided by interest expense. income before income taxes plus interest expense divided by interest expense. income before income taxes plus interest expense divided by total assets