chapter11b

chapter11b - Chapter 11b 1. A current liability is a debt...

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Chapter 11b 1. A current liability is a debt that the company reasonably expects to pay from existing current assets or through the creating of other current liabilities within one year or the operating cycle, whichever is longer. A. True B. Fals e 2. Notes Payable due for payment within one year of the balance sheet date are usually classified as current liabilities. A. True B. Fals e 3. Companies report any balance in an unearned revenue account as a current liability in the balance sheet. A. True B. Fals e 4. Current liabilities are usually listed in the order of maturity on the balance sheet. A. True B. Fals e 5. Solvency refers to the ability to pay maturing obligations and meet unexpected needs for cash. A. True B. Fals e 6. When a company remits sales taxes to the taxing agency, it debits Sales Taxes Expense and credits Cash.
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A. True B. Fals e 7. Every employer incurs liabilities relating to employees' salaries and wages. A.
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chapter11b - Chapter 11b 1. A current liability is a debt...

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