Use the following to answer questions 1– 5Reporting MethodA. Current LiabilityB. Long term liabilityC. Disclosure note onlyD. Not reportedSelect the correct reporting method for each of the itemslisted below:1.Accounts payableBond payable.3.Sales tax collected from customers.4.Unused line of credit.A contingent liability with a reasonablypossible likelihood of occurring within the next5.year and cannot be estimated.2.

Balance sheet: Balance sheet is an accounting report that furnishes an overall financial status of a…

Use the following to answer questions 1 – 5 Reporting Method A. Current Liability B. Long term liability C. Disclosure note only D. Not reported Select the correct reporting method for each of the items listed below: 1. Accounts payable 2. Bond payable. 3. Sales tax collected from customers. 4. Unused line of credit. A contingent liability with a reasonably possible likelihood of occurring within the next 5. Year and cannot he estimated

Use the following to answer questions 1 – 5 Reporting Method A. Current Liability B. Long term liability C. Disclosure note only D. Not reported Select the correct reporting method for each of the items listed below: 1. Accounts payable 2. Bond payable. 3. Sales tax collected from customers. 4. Unused line of credit. A contingent liability with a reasonably possible likelihood of occurring within the next 5. Year and cannot he estimated

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 1MC: Which of the following is not considered a current liability? A. Accounts Payable B. Unearned...

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Which of the following is not considered a current liability? A. Accounts Payable B. Unearned Revenue C. the component of a twenty-year note payable due in year 20 D. current portion of a noncurrent note payable
Match (by letter) the correct reporting method for each of the items listed below. Reporting MethodC. Current liabilityL. Long-term liabilityD. Disclosure note onlyN. Not reported Item_____ 1. Accounts payable._____ 2. A contingent liability that is probable of occurring within the next year and can be estimated._____ 3. A contingent liability that is reasonably possible of occurring within the next year and can be estimated._____ 4. Current portion of long-term debt._____ 5. Sales tax collected from customers._____ 6. Notes payable due in two years._____ 7. Customer advances._____ 8. Commercial paper._____ 9. Unused line of credit._____ 10. A contingent liability that is probable of occurring within the next year but cannot be estimated.
Consider the descriptions of the following accounts and determine if each account is a current liability, a noncurrent liability, or neither. 1. federal income tax payable this year [ Select one] a. current liability b. noncurrent liability c. neither 2. long-term note payable [ Select one] a. current liability b. noncurrent liability c. neither 3. current portion of a long-term note payable [ Select one] a. current liability b. noncurrent liability c. neither 4. cash [ Select one ] a. current liability b. noncurrent liability c. neither 5. note payable due in four years [ Select one ] a. current liability b. noncurrent liability c. neither 6. interest expense [ Select one ] a. current liability b. noncurrent liability c. neither 7. state income tax [ Select one] a. current liability b. noncurrent liability c. neither 8. allowance for warranty expense [ Select one]…
Consider the descriptions of the following accounts and determine if each account is a current liability, a noncurrent liability, or neither. 1. cash [ Select one ] a. current liability b. noncurrent liability c. neither 2. note payable due in four years [ Select one ] a. current liability b. noncurrent liability c. neither 3. interest expense [ Select one ] a. current liability b. noncurrent liability c. neither 4. state income tax [ Select one] a. current liability b. noncurrent liability c. neither 5. allowance for warranty expense [ Select one] a. current liability b. noncurrent liability c. neither 6. warranty liability [ Select one ] a. current liability b. noncurrent liability c. neither 7. unearned fee revenue [ Select one] a. current liability b. noncurrent liability c. neither
Questions: a. What is the correct bad debt expense for the year assuming that the allowance for doubtful accounts had a balance of P120,500 as of January 1, 2022? b. Your proposed adjusting journal entry to correct the balance of allowance for bad debts would include a net debit or credit of? (just indicate the amount)
Maridell’s Fashions has a debt that has been properly reported as a long-term liabilityup to the present year (2018). Some of this debt comes due in 2018. If Maridell’s Fashionscontinues to report the current position as a long-term liability, the effect will be toa. understate the debt ratio.b. understate total liabilities.c. overstate the current ratio.d. overstate net income.
which of the following statements is not valid in determining statement of financial position disclosure of accounts receivable?a. accounts receivable should be identified on the statement of financial position as "pledged" if they are used as security for a loan though the loan is shown on the same statement of financial position as a liability.b. the portion of installment accounts receivable from customers which falls due more than 12 months from the statement of financial position date usually would be excluded from current assetsc. allowance to be deducted from accounts receivable for discounts returns and adjustments to be made in the future on accounts are shown in the current statement of financial positiond. trade receivables are best shown separately from nontrade receivables where amounts of each are material
Estimated liabilities are disclosed in financial statements by: A. footnote to the financial statements. B. showing the amount among the liabilities but not extending to the liability total. C. an appropriation of retained earnings. D. appropriately classifying them as regular liabilities in the balance sheet. An item that is not a contingent liability is: A. premium offer to customers for labels or box tops. B. accommodation endorsement on customer note. C. additional compensation that may be payable on a dispute now being arbitrated. D. note receivable discounted. A loss contingency that should be accrued is: A. note receivable discounted. B. pending lawsuit C. tax in dispute D. estimated claim under a service warranty on new products sold.
True or False 1. if a credit risk has not increased significantly since initial recognition, an entity may recognize a loss allowance equal to 12-month expected credit loss 2. the effect of direct origination cost is a decrease in the effective interest rate of a loan receivable 3. The impairment model under IFRS 9 are applicable to all debt instrument including those that are measured at fair value through profit or loss 4. the impairment model under IFRS 9 are applicable to all debt instruments including those that are measured at fair value through profit or loss 5.
3. which of the following transactions will result in the increase and decrease in liability? a. payment of loan by installmentb. borrowed money from the bankc. issued a promissory note in payment of a liabilityd. request for an extension of the date of payment
Statement 1: If at the end of the reporting period, the discount period is not yet lapsed and the accounts are still unpaid, the company must recognize a purchase discount under the gross method.Statement 2: Non-trade payables are classified either as current or non-current liabilities base on their expected timing of settlement as the end of the reporting period.Statement 3: When discount on notes payable account is amortized, it decreases the carrying value of the liability. a.Two of the statements are false. b.One of the statements is false. c.All of the statements are true. d. None of the statements is true.
1. An entity determines that the credit risk on a loan receivable has not increased significantly since initial recognition. The entity should recognize loss allowance equal to a. the 12-month expected credit losses on the instrument. b. the lifetime expected credit losses on the instrument. c. sum of a and b d. none; credit losses should be recognized only when there is objective evidence of a loss event.