10 - 1. 2. The time period for classifying a liability as...

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1. The time period for classifying a liability as current is one year or the operating cycle, whichever is: A. longer. B. shorter. C. probable. D. possible. 2. To be classified as a current liability, a debt must be expected to be paid: A. out of existing current assets. B. by creating other current liabilities. C. within 2 years. D. Either a) or b). 3. Corricten Company borrows $88,500 on September 1, 2010, from Harrington State Bank by signing an $88,500, 12%, one-year note. What is the accrued interest at December 31, 2010? A. $2,655 . B. $3,540. C. $4,425. D. $10,620. 4. RS Company borrowed $70,000 on December 1 on a 6-month, 12% note. At December 31: A. neither the note payable interest payable is a curr B. the note payable is a current liability, but the interest pay C. the interest payable is a current liability, but the note pay D. both the note payable and the interest payable are curren
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5. Andre Company has total proceeds from sales of $4,515. If the proceeds include sales taxes of 5%, what is the amount to be credited to Sales? A. $4,000 . B. $4,300. C. $4,289.25. D. The correct answer is not given.
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This note was uploaded on 02/28/2012 for the course ACCT 460 taught by Professor Charley during the Spring '12 term at Aachen University of Applied Sciences.

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10 - 1. 2. The time period for classifying a liability as...

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