Name ___________________________________ ACG 302 Quiz Chapter 13 Spring 2012 1. Of the following items, the only one which should not be classified as a current liability is A) current maturities of long-term debt. B) sales taxes payable. C) short-term obligations expected to be refinanced. D) unearned revenues. 2. Why is the liability section of the balance sheet of primary importance to bankers? A) To evaluate the entity's credit quality. B) To assist in understanding the entity's liquidity. C) To better understand sources of repayment. D) To evaluate operating efficiency. 3. What is a discount as it relates to zero-interest-bearing notes payable? A) The discount represents the lender's costs to underwrite the note. B) The discount represents the credit quality of the borrower. C) The discount represents the cost of borrowing. D) The discount represents the allowance for uncollectible amounts. 4. CalCount provides its employees two weeks of paid vacation per year. As of December 31, 65 employees
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