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week 3 E13-3 - 6 184,000 A d v a n ce s a p pl ie 164,000 d...

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E 13-3 Multiple choice; CPA exam; current liabilities LO3 LO4 The following questions dealing with current liabilities are adapted from questions that appeared on past CPA examinations. Determine the response that best answers the question, and enter the corresponding letter in the answer box. 1. Black Co. requires advance payments with special orders for machinery constructed to customer specifications. These advances are nonrefundable. Information for 2006 is as follows: Customer advances - balance 12/31/05 $118,000 A d v a n ce s re ce iv e d w it h or d er s in 2
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Unformatted text preview: 6 184,000 A d v a n ce s a p pl ie 164,000 d to or d er s sh ip p e d in 2 6 A d v a n ce s a p pl ic a bl e to or d er s ca n ce le d in 2 6 50,000 In Black’s December 31, 2006, balance sheet, what amount should be reported as a current liability for advances from customer? a. $0 b. $88,000 c. $138,000 d. $148,000 Answer: b 2. Which of the following is generally associated with payables classified as accounts payable? Periodic Payment Secured of Interest by Collateral a. No No b. No Yes c. Yes No d. Yes Yes Answer: a...
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