Question 21 Interest expense on an interest-bearing note is O always equal to zero. O accrued over the life of the note. O only recorded at the time the note is issued. O only recorded at maturity when the note is paid. Question 22 The amount of sales tax (GST and PST, or HST) collected by a retail store when making sales is O a miscellaneous revenue for the store. O a current liability, O not recorded because it is a tax paid by the customer. O will increase the profit of the company. Question 23 Unearned revenue is initially recognized with a O debit to cash and credit to revenue. O debit to cash and credit to unearned revenue. Odebit to revenue and credit to cash. O debit to unearned revenue and credit to cash. Question 24 If a liability is dependent on a future event, it is called a O potential loss. hypothetical loss. O probabilistic loss. O contingent loss. RULL SCREEN BACK NET Question 25 On October 1, Bramble Computers borrows $76500 from Provincial Bank on a $76500,-morth, 5% noteAssuming interest was accrued at December 31, the entry by Bramble Computers to record payment of the note and accrued interest on January 1s: 0 78030 78030 0 76500 1530 78030 Notes Payable Cash Notes Payable Interest Payable Cash Notes Payable Interest Payable Cash Notes Payable Interest Expense Cash 76500 4590 81090 76500 1530 78030 instruy Question 26 Which of the following is a constraint in financial reporting? O cost o comparability o consistency going concern Question 27 At the time of acquisition, long-lived assets are recorded at O amortized cost. O lower of cost and market. O at fair market value. O at cost. Question 28 In following the application of the qualitative characteristics, which characteristic would be immediately applied after the relevance characteristic? O faithful representation O comparability O timeliness O understandability Question 29 The information provided in the notes that accompany financial statements is required because of the O cost principle. O full disclosure principle. O matching principle. O revenue recognition principle. Question 30 Which of the following statements is not true? Consistency means using the same accounting principles from year to year within a company. Faithful representation is the quality of information that gives assurance that all amounts reported are known with certainty. Relevant accounting information must be capable of making a difference in a decision. Accounting standards for private entities have four principal qualitative characteristics