Grade Details Unit 7 Review

Grade Details Unit - Unit 7 Current Liabilities and Contingencies(Mar 16 Mar 22 Grade Details Unit 7 Review Page 1 of 3 Unit 7 Current Liabilities

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Unit 7: Current Liabilities and Contingencies (Mar 16 - Mar 22) Grade Details: Unit 7 Review Page 1 of 3
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Unit 7: Current Liabilities and Contingencies (Mar 16 - Mar 22) Grade Details: Unit 7 Review 1. All of the following are examples of legal liabilities except (Points: 2) notes payable sales tax payable sick pay payable (may be taken as time off) CORRECT property taxes payable 2. Which of the following statements is true? (Points: 2) One of the essential characteristics of a liability is that the transaction or other event obligating the entity will probably occur in the future. To be a liability, there must be a duty or responsibility that obligates a particular entity. CORRECT To qualify as a liability, there must be a legally enforceable claim. In order to have a liability, the identity of the recipient must be known. 3. Which of the following statements regarding the gross and net methods for recording trade accounts payable is true? (Points: 2) The net method overstates accounts payable at the end of the accounting period. The net method is more widely used in practice than is the gross method.
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This note was uploaded on 07/26/2011 for the course ACC MT 140 taught by Professor Magoo during the Spring '11 term at Kaplan University.

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Grade Details Unit - Unit 7 Current Liabilities and Contingencies(Mar 16 Mar 22 Grade Details Unit 7 Review Page 1 of 3 Unit 7 Current Liabilities

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