versations relatype=Inbox - Inbox Ch11 Exercises View Zoom Add Page nsert Table Chart Text Shape Media Comment Collaborate Chapter 11 Current Liabilities and Payroll Accounting 46) All of the following statements regarding liabilities are true except: A) A liability is a probable future payment of assets or services. B) Potentialyuture wages to be paid to employees should be recorded as liabilities. C) For a liablity to be reported, it must be a present obligation that results from a past transaction or event, and requires a future payment of assets or services. D) Information about liabilities is more useful when the balance sheet identifies them as either current or long term. E Liabilities can involve uncertainty in whom to pay 53) Amounts received in advance from customers for future products or services: A) Are revenues. B) Increase income C) Areliabilities D) Are not allowed under GAAP. E) Require an outlay of cash in the future. Nothing Select an objec asti 54) Sales taxes payable is reported as a(n) A) Estimated liability B) Contingent liability C) Current liability, D) Business expense E) Long-term asset cati 56) If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be joumalized as: A) Debit Sales, credit Uneared Revenge B) Debit Uneared Revenue, credit Sales C) Debit Cash, credit Uneamed Revenue Dehitneame v endit Cash y Exa - 3 4 on y - Inbox Ch11 Exercises 125% Zoom View Add Page Insert Table Chart TextShape Media Comment Collaborate E) Long-term asset 56) If a company has advance ticket sales totaling $2,000,000 for the upcoming football season, the receipt of cash would be journalized as: A) Debit Sales, credit Uncamed Revenue B) Debit Unyamed Revenue, credit Sales C) Debit Cab.credit Uneared Revenue. D) Debit Uncamed Revenue, credit Cash. E) Debit Cash, credit Ticket sales payable. 2 74) On December 1, Victoria Company signed a 90-day, 6% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year) A) SO B) $75 C) 5900 D) $225 E) $300 ca St. de ar Nothing Select an object exa St. che ati lexa ME bly Exa 76) On November 1, Alan Company signed a 120-day, 8% mote payable, with a face value of $9,000. What is the maturity value (principal plus interest of the note on March 17 (Use 360 days a year.) 88 * 3 4 5 ER TY UIo P du conversationsfilter=typeinbox - Inbox Ch11 Exercises CO Collaborate View Insert Table Chart TextShape Media Comment Zoom Add Page D) $225 E $300 lexa St cises evidere Alex Fo: e tonigh - that the Alexa Su rcises rovide ar 76) On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9.000. What is the maturity value (principal plus interest of the note on March 1? (Use 360 days a year.) A) $9.000 B) 5720 C) 59,120 D) $9.720 E) $9,240 Nothil Select an obje in Alexa St. see the att 77) On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. Alan made the appropriate year-end accrual. What is the joumal entry as of March 1 to record the payment of the note assuming no reversing entry was made? (Use 360 days a year.) A) Debit Notes Payable $9.000; debit Interest Payable $120 credit Cash 39,120 B) Debit Cash $9,240, credit Notes Payable 59.240 C) Debit Notes Payable 59.240: credit Interest Payable $120; credit Interest Expense S120 credit Cash $9.000. D) Debit Notes Payable $9,000, debit Interest Payable $120; debit Interest Expense $120, credit Cash 59,240. E) Debit Notes Payable 59.000, debit Interest Expense $240, credit Cash 59.240. op. Alex M nd Poly Exca 9 ER TY U op
