year-end_xtra_credit - MULTIPLE CHOICE QUESTIONS 1...

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MULTIPLE CHOICE QUESTIONS 1. Liabilities are classified on the balance sheet as current or a. deferred. b. unearned. c. long-term. d. accrued. 2. Most companies pay current liabilities 3. A current liability is a debt that can reasonably be expected to be paid 4. Which of the following most likely would be classified as a current liability? 5. Failure to record a liability will probably a. result in an overstated net income. b. result in overstated total liabilities and owner’s equity. c. have no effect on net income. d. result in understated total assets. 6. Very often, failure to record a liability means failure to record a(n) 7. Current liabilities are due 8. With an interest-bearing note, the amount of assets received upon issuance of the note is generally
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9. The interest charged on a $100,000 note payable, at the rate of 6%, on a 90-day note would be a. $6,000. b. $3,333. c. $1,500. d. $500. 10. The interest charged on a $100,000 note payable, at the rate of 6%, on a 60-day note would be 11. The interest charged on a $100,000 note payable, at the rate of 6%, for a year would be 12. The interest charged on a $50,000 note payable, at the rate of 6%, on a 90-day note would be 13. The interest charged on a $50,000 note payable, at the rate of 6%, on a 60-day note would be a. $3,000. b. $1,500. c. $750. d. $500. 14. Interest expense on an interest-bearing note is 15. Sales taxes collected by a retailer are recorded by
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