LIABILITIES AND EQUITY.docx - THEORIES LIABILITIES CHERYNA ROSE C ALFONSO BSAIS-2 Multiple Choice Identify the letter of the choice that best completes

LIABILITIES AND EQUITY.docx - THEORIES LIABILITIES CHERYNA...

This preview shows page 1 - 3 out of 23 pages.

THEORIES LIABILITIES CHERYNA ROSE C. ALFONSO BSAIS-2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1.Which of the following is not a characteristic of a liability? a.It represents a transfer of an economic resourceb.It results from past transaction or eventc.It must be payable in cash.d.It arises from present obligation to other entityANSWER: C 2. Short term obligations are reported as noncurrent if: a. The entity has the ability to refinance on a long term basis. b. The entity has a long term line of credit c. The entity has a tentative plan to issue long term bonds payable d. The entity has the discretion to refinance as long term ANSWER: A 3. Classifying liabilities as either current or noncurrent helps creditors to asses a. The degree of an entity’s liabilities. b. The amount of an entity’s liabilities c. The relative risk of an entity’s liabilities d. Profitability ANSWER: A 4.Which of the following is not an example of liabilities? 5.Which of the following is a characteristic of a current liability but not a non current liability?
Image of page 1

Subscribe to view the full document.

THEORIES BONDS PAYABLE CHERYNA ROSE C. ALFONSO BSAIS-2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. _________ are bonds issued whereby another party promises to make payment if the borrower fails to do so a. Convertible Bonds b. Callable Bonds c. Guaranteed Bonds. d. Junk Bonds ANSWER: C 2.Bonds Payable are initially measured at: 3.Which of the following statements is true: a.Discount and Premium on bonds payable are reported as adjustments to the bond liability account.b.Discounts on Bond Payable is an addition to the bond payablec.Premium on Bond Payable is a deduction from the bond payabled.Discounts and Premiums are not accounted forANSWER: A 4.Debenture bonds are:
Image of page 2
Image of page 3
  • Spring '18

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes