Chapter 13

Chapter 13 - SelfTest,Question1 Correct bepaidwithinayear...

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Self Test, Question 1
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Correct.      Current liabilities are defined as obligations whose liquidation is reasonably expected to: be paid within a year. require use of current assets. require use of current assets or creation of other current liabilities. All of the options are correct. Self Test, Question 2 Correct.      All of the following are types of current liabilities except: current maturities of long-term debt. returnable deposits. unearned revenues. All of the options are current liabilities. Self Test, Question 3 Correct.     
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Long-term debts maturing currently should be included as a current liability if they are or will be: converted into capital stock. refinanced with the proceeds of a new debt issue. due on demand. retired by use of noncurrent assets. Self Test, Question 4 Correct.      A company can exclude a short-term obligation from current liabilities if it: intends to refinance the obligation on a long-term basis and demonstrates an ability to consummate the refinancing. intends to refinance the obligation on a long-term basis. demonstrates an ability to consummate the refinancing. pays off the obligation after the balance sheet date and subsequently replaces it with long-term debt before the balance  sheet is issued. Self Test, Question 5 Correct.      When retailers collect sales taxes from customers, the taxes collected are recorded as:
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Unearned Sales Taxes Revenue. Sales or Sales Taxes Payable. Sales. Sales Taxes Payable. Self Test, Question 6 Correct.      Most corporations make quarterly tax payments based on: actual taxable income for the quarter. actual annual tax liability. estimated taxable income for the quarter. estimated total annual tax liability. Self Test, Question 7 Correct.      Employer payroll taxes include all of the following except: federal unemployment taxes.
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federal income taxes. state unemployment taxes. FICA taxes. Self Test, Question 8 Correct.      A liability for compensated absences is: accrued only if specific conditions are met. disclosed in a note only. accrued under all conditions. never accrued but may be disclosed if desired Self Test, Question 9 Correct.      Which one of the following statements related to compensated absences is incorrect?
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Accumulated rights can be carried forward to future periods if not used in the period earned. Vested rights are not contingent on an employee's future service. The expense and related liability should normally be computed using the future salary rate.
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Chapter 13 - SelfTest,Question1 Correct bepaidwithinayear...

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