Question 1

Journalize the following,assuming a 360-day year is used for interest calculations:​

Accepted Answer

The answer of Journalize the following,assuming a 360-day year is...

Question 2

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Cash + Temporary investments + Accounts receivable
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

Cash, temporary investments, and accounts receivable are considered quick assets because they can be quickly converted into cash, typically within 90 days, without losing value.

Question 3

Match each payroll item that follows to the one item (a-f) that best describes its characteristics.
-State unemployment compensation tax 
(SUTA)
A)Amount is limited, withheld from employee only
B)Amount is limited, withheld from employee and matched by employer
C)Amount is limited, paid by employer only
D)Amount is not limited, withheld from employee only
E)Amount is not limited, withheld from employee and matched by employer
F)Amount is not limited, paid by employer only

Accepted Answer

State unemployment compensation tax (SUTA) is a tax paid by the employer only, and the amount is limited.

Question 4

On August 1,Batson Company issued a 60-day note with a face amount of $140,000 to Jergens Company for merchandise inventory.
(Assume a 360-day year is used for interest calculations.)
a.Determine the proceeds of the note assuming the note carries an interest rate of 6%.
b.Determine the proceeds of the note assuming the note is discounted at 6%.

Accepted Answer

The answer of On August 1,Batson Company issued a 60-day...

Question 5

Journalize the following entries on the books of the borrower and creditor.Label accordingly.
(Assume a 360-day year is used for interest calculations.)​​

Accepted Answer

The answer of Journalize the following entries on the books...

Question 6

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is reasonably possible but amount is not estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Accepted Answer

When an event is reasonably possible but the amount is not estimable, it is not necessary to recognize a liability in the financial statements. However, disclosure of the contingency is required to inform the users of the financial statements of the potential risk. Therefore, the proper treatment is to only disclose the contingency in the notes to the financial statements.

Question 7

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Remote contingent liability
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

The answer of Match each of the following items with...

Question 8

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is remote and amount is estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Accepted Answer

When an event is considered remote and the amount is estimable, the proper treatment is to neither record nor disclose the contingent liability.

Question 9

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is probable and amount is estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Accepted Answer

When an event is probable and the amount can be estimated, the proper treatment is to record the liability in the financial statements and also disclose it in the notes to the financial statements.

Question 10

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is probable but amount is not estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Accepted Answer

If an event is probable but the amount is not estimable, then it should not be recorded in the financial statements but should be disclosed in the footnotes. This is because recording the liability without a reliable estimate could potentially mislead users of the financial statements.

Question 11

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Current assets - Current liabilities
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

Working capital is defined as current assets minus current liabilities, which measures a company's operational efficiency and short-term financial health.

Question 12

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is remote and amount is not estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Accepted Answer

A contingent liability that is remote and whose amount cannot be estimated should not be recorded or disclosed in the financial statements as it is not expected to have a material impact on the company's financial position.

Question 13

Use the following key (a-d) to identify the proper treatment of each contingent liability.
-Event is reasonably possible and amount is estimable
A)Record only
B)Record and disclose
C)Disclose only
D)Do not record or disclose

Accepted Answer

When an event is reasonably possible and the amount is estimable, the proper treatment for the contingent liability is to disclose it only in the notes to the financial statements, without recording it in the accounts.

Question 14

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Current assets/Current liabilities
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

The answer of Match each of the following items with...

Question 15

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Reasonably possible likelihood of a liability
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

The answer of Match each of the following items with...

Question 16

Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company.CorpOne discounts the note at 8%.
(Assume a 360-day year is used for interest calculations.)

Accepted Answer

The answer of Roseland Design borrowed $700,000 on a 90-day...

Question 17

A business issued a 120-day,6% note for $10,000 to a creditor on account.The company uses a 360-day year for interest calculations.Journalize the entries to record 
(a)the issuance of the note and 
(b)the payment of the note at maturity,including interest.

Accepted Answer

The answer of A business issued a 120-day,6% note for...

Question 18

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Probable likelihood of a liability but cannot be estimated
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

The correct match for "Probable likelihood of a liability but cannot be estimated" is to "Disclose only in notes to financial statements." This is because when a company cannot estimate the amount of a probable liability, it should disclose the nature of the contingency and an estimate of its financial effect in the notes to the financial statements, if possible.

Question 19

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-(Cash + Temporary investments + Accounts receivable)/Current liabilities
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

The formula provided in the first line is for the quick ratio, which measures a company's ability to pay off its current liabilities with its quick assets (which include cash, temporary investments, and accounts receivable).

Question 20

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once.
-Probable likelihood and estimable liability
A)Current ratio
B)Working capital
C)Quick assets
D)Quick ratio
E)Record an accrual and disclose in the notes to the financial statements
F)Disclose only in notes to financial statements
G)No disclosure needed in notes to financial statements

Accepted Answer

Probable likelihood and estimable liability are best addressed by recording an accrual and disclosing in the notes to the financial statements, as per accounting standards.

Quiz 11: Current Liabilities and Payroll

Journalize the following,assuming a 360-day year is used for interest calculations:

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Cash + Temporary investments + Accounts receivable

Match each payroll item that follows to the one item (a-f) that best describes its characteristics. -State unemployment compensation tax (SUTA)

Journalize the following entries on the books of the borrower and creditor.Label accordingly. (Assume a 360-day year is used for interest calculations.)

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is reasonably possible but amount is not estimable

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Remote contingent liability

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is remote and amount is estimable

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable and amount is estimable

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable but amount is not estimable

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Current assets - Current liabilities

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is remote and amount is not estimable

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is reasonably possible and amount is estimable

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Current assets/Current liabilities

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Reasonably possible likelihood of a liability

Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company.CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.)

A business issued a 120-day,6% note for $10,000 to a creditor on account.The company uses a 360-day year for interest calculations.Journalize the entries to record (a)the issuance of the note and (b)the payment of the note at maturity,including interest.

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Probable likelihood of a liability but cannot be estimated

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -(Cash + Temporary investments + Accounts receivable) /Current liabilities

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Probable likelihood and estimable liability

Quiz 11: Current Liabilities and Payroll

Journalize the following,assuming a 360-day year is used for interest calculations:​

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Cash + Temporary investments + Accounts receivable

Match each payroll item that follows to the one item (a-f) that best describes its characteristics. -State unemployment compensation tax (SUTA)

Journalize the following entries on the books of the borrower and creditor.Label accordingly. (Assume a 360-day year is used for interest calculations.)​​

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is reasonably possible but amount is not estimable

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Remote contingent liability

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is remote and amount is estimable

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable and amount is estimable

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is probable but amount is not estimable

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Current assets - Current liabilities

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is remote and amount is not estimable

Use the following key (a-d) to identify the proper treatment of each contingent liability. -Event is reasonably possible and amount is estimable

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Current assets/Current liabilities

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Reasonably possible likelihood of a liability

Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company.CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.)

A business issued a 120-day,6% note for $10,000 to a creditor on account.The company uses a 360-day year for interest calculations.Journalize the entries to record (a)the issuance of the note and (b)the payment of the note at maturity,including interest.

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Probable likelihood of a liability but cannot be estimated

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -(Cash + Temporary investments + Accounts receivable) /Current liabilities

Match each of the following items with the term or phrase (a-g) that best describes it. Terms or phrases may be used more than once. -Probable likelihood and estimable liability

Journalize the following,assuming a 360-day year is used for interest calculations:

Journalize the following entries on the books of the borrower and creditor.Label accordingly. (Assume a 360-day year is used for interest calculations.)