207sakai+test+3+09F - Practice test questions Acct 207...

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Practice test questions Acct 207 Chapter 10 1. When a liability is recorded, it includes the principal and interest to be paid. a. true b. false 2. An unearned (deferred) revenue is reported as a liability because cash has been collected, but the related revenue has not been earned by the end of the accounting period. a. true b. false 3. All contingent liabilities should be classified as either current or long-term liabilities on the balance sheet for the current period. a. true b. false 4. The matching principle requires that retirement benefit expenses be recorded in the year the employees receive the retirement checks. a. true b. false 5. In the recognition of revenues and expenses, differences between the financial statements and the tax return will result in deferred taxes. a. true b. false 6. Which of the following is true about financing assets by using more stockholders’ equity? a. It presents higher risk to the company. b. It usually requires the company to pay a fixed dividend rate to investors. c. The corporation must retire the shares through repurchasing them in the future. d.
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This note was uploaded on 11/15/2011 for the course ACCT 207 taught by Professor Hudchinson during the Fall '08 term at University of Delaware.

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207sakai+test+3+09F - Practice test questions Acct 207...

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