Current Liabilities MCQs
- ?In accordance with accounting for transfers and servicing, all
of the following would be disclosed except
- ?Lyle, Inc. is preparing its financial statements for the year
ended December 31, year 2. Accounts payable amounted to
$360,000 before any necessary ...
- ?Rabb Co. records its purchases at gross amounts but wishes
to change to recording purchases net of purchase discounts.
Discounts available on purcha...
- ?On March 1, year 1, Fine Co. borrowed $10,000 and signed
a two-year note bearing interest at 12% per annum compounded
annually. Interest is payable ...
- ?On September 1, year 1, Brak Co. borrowed on a
$1,350,000 note payable from Federal Bank. The note bears
interest at 12% and is payable in three equ...
- ?Ames, Inc. has $500,000 of notes payable due June 15, year
3. Ames signed an agreement on December 1, year 2, to borrow
up to $500,000 to refinance ...
- ?Cali, Inc. had a $4,000,000 note payable due on March 15,
year 3. On January 28, year 3, before the issuance of its year 2
financial statements, Cal...
- ?On December 31, year 2, Largo, Inc. had a $750,000 note
payable outstanding, due July 31, year 3. Largo borrowed the
money to finance construction o...
- ?Lime Co.’s payroll for the month ended January 31, year 2,
is summarized as follows:
Total wages $10,000
Federal income tax withheld 1,200
- ?Under state law, Acme may pay 3% of eligible gross wages or
it may reimburse the state directly for actual unemployment
claims. Acme believes that a...
- ?Pine Corp. is required to contribute, to an employee stock
ownership plan (ESOP), 10% of its income after deduction for
this contribution but before...
- ?On July 1, year 2, Ran County issued realty tax assessments
for its fiscal year ended June 30, year 3. On September 1, year 2,
Day Co. purchased a w...
- ?Kemp Co. must determine the December 31, year 2 yearend
accruals for advertising and rent expenses. A $500 advertising
bill was received January 7, ...
- ?In June year 2, Northan Retailers sold refundable merchandise
coupons. Northan received $10 for each coupon redeemable
from July 1 to December 31, y...
- ?Delect Co. provides repair services for the AZ195 TV set.
Customers prepay the fee on the standard one-year service contract.
The year 1 and year 2 ...
- ?Brad Corp. has unconditional purchase obligations associated
with product financing arrangements. These obligations are
reported as liabilities on B...
- ?Under IFRS, if a long-term debt becomes callable due to
the violation of a loan covenant
- ?Under IFRS, which of the following accounts would not be
considered a “provision”?