Accounting Chapter 11 Quiz
Rios Raft Company had the following liabilities. Determine whether each liability would be considered a current liability (CL) or a long-term liability (LTL): Accounts Payable
CL
Rios Raft Company had the following liabilities. Determine whether each liability would be considered a current liability (CL) or a long-term liability (LTL): Income Tax Payable
CL
Rios Raft Company had the following liabilities. Determine whether each liability would be considered a current liability (CL) or a long-term liability (LTL): Note Payable due in six months
CL
Rios Raft Company had the following liabilities. Determine whether each liability would be considered a current liability (CL) or a long-term liability (LTL): Salaries Payable
CL
Rios Raft Company had the following liabilities. Determine whether each liability would be considered a current liability (CL) or a long-term liability (LTL): Sales Tax Payable
CL
Rios Raft Company had the following liabilities. Determine whether each liability would be considered a current liability (CL) or a long-term liability (LTL): Unearned Revenue due in eight months
CL
Rios Raft Company had the following liabilities. Determine whether each liability would be considered a current liability (CL) or a long-term liability (LTL): Notes Payable due in three years
LTL
Which of the following would be considered a long- term liability?
Mortgages Payable
Income taxes are withheld from the employee's paycheck.
True
Net pay is the total amount of compensation that an employee takes home after the deductions are made.
True
A debt that must be paid within one year or within the entity's operating cycle, whichever is longer, is considered _______.
a current liability
Match the likelihood of a future event with the reporting of the contingency. An answer may be selected more than once: Remote
a. Do not disclose.
Match the likelihood of a future event with the reporting of the contingency. An answer may be selected more than once: Probable and the amount of the loss can be estimated
b. Record an expense and a liability based on estimated amounts.
Match the likelihood of a future event with the reporting of the contingency. An answer may be selected more than once: Probable and the amount of the loss cannot be estimated
c. Describe the situation in a note to the financial statements.
Match the likelihood of a future event with the reporting of the contingency. An answer may be selected more than once: Reasonably possible
c. Describe the situation in a note to the financial statements.
Accounts payable is considered a ______________.
current liability
The total amount of salary, wages, commissions, and any other employee compensation before taxes and other dedications is ____________________.
gross pay
The matching principle requires businesses to report Warranty Expense ________.
in the same period that the company records the revenue related to that warranty
Known liabilities of estimated amounts are
reported on the balance sheet.
