Which of the complying with is not an instance of an accrued liability? a. Accounts payable b. Interemainder payable c. Wperiods payable d. Property taxes payable
When a crmodify is made to the income taxes payable account regarded taxes withorganized from an employee, the matching debit is made to: a. Wperiods Expense b. Taxes Expense c. Taxes Payable d. Cash
ABC Advisors is being sued by a former customer. ABC"s lawyers say that it is possible, yet not probable, that the company will shed the lawsuit and the trial need to last around 18 more months. Should ABC shed, they will most most likely have to pay roughly $750,000. How must this lawsuit be reported in the financial statements? a. Current licapacity of $750,000 and Expense of $750,000. b. Long-term licapability of $750,000 and also Expense of $750,000. c. No disclocertain is compelled. d. No effect on the balance sheet or revenue statement, but described in the footnotes.
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To record warranties, the adjusting journal entry would be: a. a delittle bit to Warranty Licapability and a crmodify to Warranty Expense. b. a delittle to Warranty Expense and also a credit to Warranty Licapacity. c. a delittle to Warranty Expense and also a delittle to Cash. d. a delittle bit to Warranty Liability and also a credit to Cash.
Which of these might not involve a liability? a. purchasing inventory on crmodify. b. utilizing services. c. purchasing goods. d. purchasing a car for cash.
Which of the complying with is true? a. No journal entries or footnotes are important if the probcapability of a contingent licapability is remote. b. A contingent liability need to constantly be recorded in the footnotes to the financial statements. c. A contingent licapability need to always be recorded within the financial statements. d. A agency have the right to select to record a contingent licapacity either within its financial statements or in the footnotes to the financial statements.
a. No journal entries or footnotes are vital if the probability of a contingent liability is remote
Warranty expense is: a. videotaped as it is incurred. b. recorded in the duration of sale. c. capitalized as a warranty ascollection. d. None of these selections is correct .
When should a contingent licapability be recognized? a. When a reasonable estimation deserve to be made b. When the contingent licapability is probable c. Neither "as soon as a reasonable estimation have the right to be made" nor "once the contingent liability is probable" d. "When a reasonable estimation can be made" and also "when the contingent liability is probable"
Bonds are offered at a premium if the a. market price of interemainder was more than the prime price at the moment of issue. b. issuing agency has actually a better crmodify rating than other service providers in the very same business. c. industry price of interemainder was less than the coupon price at the time of worry. d. company will certainly need to pay a premium to retire the bonds.
If bonds are issued at 101.25, this suggests that a. a $10,000 bond offered at par worth plus $101.25. b. a $10,000 bond marketed for $101.25. c. a $1,000 bond marketed for $1,012.50. d. the bond rate of interemainder is 101.125% of the prime rate of interest.
What best defines the discount on bonds payable account? a. A licapability b. An price c. An asset d. A contra liability
The premium on bonds payable account is displayed on the balance sheet as a. a contra ascollection. b. a reduction of an price. c. an enhancement to a irreversible liability. d. a subtraction from a permanent liability.
When bonds are issued by a company, the bookkeeping entry typically reflects an a. boost in liabilities and also a decrease in stockholders" equity. b. rise in assets and an increase in stockholders" equity. c. increase in liabilities and also a rise in stockholders" equity. d. rise in assets and an increase in liabilities.
The Bower Company sold $100,000 of 20-year bonds for $95,000. The stated rate on the bonds was 7%, and also interemainder is passist every year on December 31. What entry would certainly be made on December 31 when the interest is paid? (Numbers are omitted.) a.Interemainder Expense (debit) Cash (credit) b.Interemainder Expense (debit) Bonds Payable (credit) Cash (credit) c.Interemainder Expense (debit)Discount on Bonds Payable (debit) Cash (credit) d.Interest Expense (debit) Discount on Bonds Payable (credit) Cash (credit)
Bonds in the amount of $100,000 via a life of 10 years were issued by the Roundy Company kind of. If the stated price is 6% and also interemainder is passist semiannually, what would be the total amount of interemainder paid over the life of the bonds? a. $120,000 b. $60,000 c. $30,000 d. $6,000
Sean Corp. issued a $40,000, 10-year bond, via a stated rate of 8%, passist semievery year. How much cash will the bond investors get at the end of the initially interest period? a. $800 b. $1,600 c. $3,200 d. $4,000
When bonds are issued at a discount, the interest cost for the duration is the amount of interest payment for the period a. plus the premium amortization for the duration. b. minus the premium amortization for the period. c. plus the discount amortization for the duration. d. minus the discount amortization for the period.
When bonds are issued at a premium, the interemainder cost for the period is the amount of interest payment for the duration a. minus the premium amortization for the duration. b. plus the premium amortization for the duration. c. plus the discount amortization for the period. d. minus the discount amortization for the period.
The outcome of utilizing the reliable interemainder approach of amortization of the discount on bonds is that a. the cash interest payment is higher than the interest expense. b. the amount of interest cost decreases each period. c. the interest expense for each amortization period is constant. d. a consistent interest price is charged against the debt carrying worth.
Serenity Company issued $100,000 of 6%, 10-year bonds as soon as the sector price of interemainder was 5%. The proceeds from this bond concern were $107,732. Using the efficient interemainder approach of amortization, which of the complying with statements is true? Assume interemainder is paid each year. a. Amortization of the premium for the initially interemainder period will be $1,464. b. Amortization of the premium for the first interemainder duration will certainly be $613. c. Interemainder payments to bondholders each period will certainly be $5,000. d. Interest payments to bondholders each duration will be $6,464.
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Bonds are a famous resource of financing bereason a. a firm having cash circulation problems deserve to postpone payment of interemainder to bondholders. b. financial analysts tfinish to downgrade a firm that has actually elevated large amounts of cash by frequent issues of stock. c. bond interemainder price is deductible for taxes purposes, while dividends passist on stock are not. d. the bondholders deserve to always convert their bonds into stock if they select.