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.