AC201Quiz7CWOA - D Liabilities to labor unions E All of the...

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Multiple Choice Questions ( 10 points each ) Select the One, Best Answer 1. Sales taxes payable: A) Is an estimated liability. B) Is a contingent liability. C) Is a current liability for retailers. D) Is a business expense. E) Is a long-term liability. 2. A contingent liability: A) Is always of a specific amount. B) Is a potential obligation that depends on a future event arising out of a past transaction or event. C) Is an obligation not requiring future payment. D) Is an obligation arising from the purchase of goods or services on credit. E) Is an obligation arising from a future event. 3. Payroll expenses for employers may involve: A) Liabilities to individual employees. B) Liabilities to federal and state governments. C) Liabilities to insurance companies. D)
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Unformatted text preview: D) Liabilities to labor unions. E) All of the above. Page 1 4. Estimated liabilities commonly arise from: A) Warranties. B) Vacation benefits. C) Income taxes. D) Employee benefits. E) All of the above. Problem ( 60 points ) On September 15, SportsWorld borrowed $75,000 cash from FirstBank on a 12%, 60-day note payable. a. Prepare SportsWorld's general journal entry to record the issuance of the note payable. b. Prepare SportsWorld's general journal entry to record the payment of the note at maturity. Sept 15 Cash………………………………. 75,000 Notes Payable……………. . 75,000 Nov 14 Notes Payable……………………. 75,000 Interest Expense…………………. 1,500 Cash……………………… 76,500...
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