UESTION 1

Which of the following would not be reported as a current liability.

		accounts payable.
		bonds payable.
		notes payable.
		unearned revenues.

1 points

QUESTION 2

A current liability is a debt that can reasonably be expected to be paid

		within one year.
		between 6 months and 18 months.
		out of currently recognized revenues.
		out of cash currently on hand.

QUESTION 3

Liabilities are classified on the balance sheet as current or

		deferred.
		unearned.
		long-term
		accrued.

QUESTION 4

Which of the following is usually not an accrued liability?

		Interest payable
		Wages payable
		Taxes payable
		Notes payable

1 points

QUESTION 5

Sales taxes collected by a retailer are recorded by

		crediting Sales Taxes Revenue.
		debiting Sales Taxes Expense.
		crediting Sales Taxes Payable.
		debiting Sales Taxes Payable.

1 points

QUESTION 6

The current portion of long-term debt should

		be paid immediately.
		be reclassified as a current liability.
		be classified as a long-term liability.
		not be separated from the long-term portion of debt.

1 points

QUESTION 7

A contingent liability need only be disclosed in the financial statement notes when the likelihood of the contingency is

		reasonably possible.
		probable.
		remote.
		unlikely.

1 points

QUESTION 8

Which one of the following payroll taxes does not result in a payroll tax expense for the employer?

		FICA tax
		Federal income tax
		Federal unemployment tax
		State unemployment tax

1 points

QUESTION 9

When recording the employee's (versus the employer's) portion of the payroll which entry would be incorrect?

		Debit salaries and wages expense.
		Credit FICA taxes payable.
		Debit payroll tax expense.
		Credit salaries and wages payable or cash.

1 points

QUESTION 10

Which of the following "employer" payroll entries is correct:

		Debit Wages Expense
		Credit Federal Income Tax Payable
		Credit FICA Tax Payable
		Credit Salaries and Wages Payable