QUIZ 4 - Question 1: Score 1/1 Panther Co. had a warranty...

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Question 1: Score 1/1 Panther Co. had a warranty liability of $350,000 at the beginning of 2009, and $310,000 at end of 2009. Warranty expense is based on 4% of sales, which were $50 million for the year. What were the warranty expenditures for 2009? Your Answer: Choice Selected $2,000,000. $1,960,000. $0. $2,040,000. Selected Feedback: $350,000 + $2,000,000 $310,000 = $2,040,000 Question 2: Score 1/1 Which of the following is not a characteristic of a liability? Your Answer: Choice It must be payable in cash. Selected It arises from present obligations to other entities. It results from past transactions or events. It represents a probable, future sacrifice of economic benefits. Question 3: Score 1/1
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Classifying liabilities as either current or long-term helps creditors assess: Your Answer: Choice Selected The relative risk of a firm's liabilities. Selected Profitability. The amount of a firm's liabilities. The degree of a firm's liabilities. Question 4: Score 1/1 The rate of interest that actually is incurred on a note payable is called the: Your Answer: Choice Selected Effective rate. Selected Stated rate. Contract rate. Face rate. Question 5: Score 1/1 Jane's Donut Co. borrowed $200,000 on January 1, 2009, and signed a two- year note bearing interest at 12%. Interest is payable in full at maturity on January 1, 2011. In connection with this note, Jane's should report interest expense at December 31, 2009, in the amount of:
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Your Answer: Choice Selected $24,000. Selected $50,880. $48,000. $0. Feedback: $200,000 12% 12/12 = $24,000 Question 6: Score 1/1 On September 1, 2009, Hiker Shoes issued a $116,000, 8-month, noninterest- bearing note. The loan was made by Second Commercial Bank whose stated discount rate is 11%. Hiker's effective interest rate on this loan is (Round your final answer to two decimal places, e.g., .1234 as 12.34%.) : Your Answer: Choice Selected 11%. 11.8%. 11.79%. 11.87%. Selected Feedback: $116,000 × 11% × 8/12 = $8,507 [8,507/($116,000 – $8,507)] × 12/8 = 11.87% Question 7: Score 1/1 M Corp. has an employee benefit plan for compensated absences that gives employees 15 paid vacation days. Vacation days can be carried over
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QUIZ 4 - Question 1: Score 1/1 Panther Co. had a warranty...

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