a520ssq7 - SELF STUDY QUESTIONS Fill in the Blank Section 7...

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SELF STUDY QUESTIONS Section 7 Fill in the Blank Module 1 In the space provided, write the word or words to either replace the question mark or answer the question. 1. ? consist of obligations or responsibilities, based upon past or present transactions, to convey assets or to perform services sometime in the future. 2. Obligations or responsibilities, based upon past or present transactions, to convey current assets or to perform services within one year or the normal operating cycle, whichever is longer, are referred to as ? . 3. The proper measure, theoretically, of any liability at the time it is incurred is ? . 4. Year-end adjustments related to guarantees or warranties are made in accordance with the ? principle.
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SELF STUDY QUESTIONS Section 7 Fill in the Blank Module 2 In the space provided, write the word or words to either replace the question mark or answer the question. 1. The ? principle requires complete and under- standable reporting of all significant information relating to the economic affairs of the enterprise so that the financial statements will not be misleading. 2. A loss contingency for which the amount of loss can be reasonably estimated should be accrued when the occurrence of the loss is ? (probably, remote, reasonably possible).
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SELF STUDY QUESTIONS Section 7 Multiple Choice Module 1 Circle the letter of the best answer. 1. Liabilities are A. any accounts having credit balances after closing entries are made B. deferred credits that are recognized and measured in conformity with generally accepted accounting principles C. obligations to transfer ownership shares to other entities in the future D. obligations arising from past transactions and payable in assets or services in the future E. none of the above 2. Which of the following generally is not classified as a current liability? A. accruals for product warranties B. cash collections received in advance of performance of services C. obligations that will be liquidated by the issuance of additional shares of the company's own common stock D. none of the foregoing 3. Which of the following is an accrued liability? A. wages payable B. cash dividends payable C. rent revenue collected one month in advance D. portion of long-term debt payable in current year 4. On September 1, 20x1, a company borrowed cash and signed a one-year interest- bearing note on which both the principal and interest are payable on September 1, 20x2. How will the note payable and the related interest be classified in the December 31, 20x1, balance sheet? Note Payable Interest Payable A. current liability noncurrent liability B. noncurrent liability current liability C. current liability current liability D. noncurrent liability no entry E. current liability no entry
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SELF STUDY QUESTIONS Section 7 Multiple Choice Module 1 5. According to FASB Statement No. 6, "Classification of Short-Term Obligations Expected to be Refinanced," an enterprise's intent to refinance the short-term obligation on a long-term basis may be supported in either of two ways. Which of the
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This note was uploaded on 11/13/2011 for the course ACCT 101 taught by Professor Dontknow during the Spring '08 term at Central Washington University.

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a520ssq7 - SELF STUDY QUESTIONS Fill in the Blank Section 7...

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