Which of the following would not be classified as a current liability?

Group of answer choices

notes payable.

revenue received in advance.

mortgage.

accrued taxes payable.

The account 'Revenue received in advance' is properly treated as a/an:

Group of answer choices

liability.

asset.

revenue.

payment to shareholders.

On 1 October, Simon's Solar Service borrows $150,000 from Statewide Bank on a 3

month, 4% note. What accrual entry must Simon's Solar Service make on 31 December before financial statements are prepared?

(Apologies that the journal entry is not formatted correctly)

Group of answer choices

Dr Interest Expense 6,000; Cr Interest Payable 6,000

Dr Interest Expense 1,500; Cr Notes Payable 1,500

Dr Interest Expense 1,500; Cr Interest Payable 1,500

Dr Interest Payable 1,500; Cr Interest Expense 1,500

On 1 October, Simon's Solar Service borrows $150,000 from Statewide Bank on a 3

month, 4% note. Interest was accrued on 31 Dec when financial reports were prepared. The entry by Simon's Solar Service to record payment of the note and accrued interest on 1 January is:

(Apologies that the journal entry is not formatted correctly)

Group of answer choices

Dr Notes Payable 150,000, Dr Interest Payable 4,000; Cr Cash 154,000

Dr Notes Payable 150,000, Dr Interest Expense 1,000; Cr Cash 151,000

Dr Notes Payable 151,000; Cr Cash 151,000

Dr Notes Payable 150,000, Dr Interest Payable 1,500; Cr Cash 151,000

Companies may find it attractive to issue debt instead of equity because:

Group of answer choices

interest on debt is not locked in for repayment.

interest on debt has to be repaid by the shareholders, not the company.

interest on debt is tax deductible.

interest on debt is always a cheaper form of finance than dividends on shares.

When a company repurchases its unsecured notes, the debt has been:

Group of answer choices

discounted.

redeemed.

determined.

revalued.

The current portion of non-current liabilities should:

Group of answer choices

be reclassified as a current liability.

be paid immediately.

not be separated from the long-term portion of liabilities.

be classified as a long-term liability.

Warranty obligations are classified as provisions because the:

Group of answer choices

future cost of repairs is known with certainty.

cost of future servicing is not able to be estimated reliably.

amount of future claims is uncertain.

amount of the future sacrifice is certain.

Timeless Ltd produces clocks and sells them with a one-year warranty. The warranty provision account currently has a debit balance of $4,000. The estimated cost of repairing clocks that have already been sold is $18,000. The adjustment needed to update the warranty provision account is:

Group of answer choices

credit $22,000.

debit $22,000.

debit $18,000.

credit $18,000.

Liquidity ratios measure a company's:

Group of answer choices

revenue-producing ability.

long-range solvency.

short-term liabilities paying ability.

operating cycle.