Liabilities are...A. creditors" claims on total assetsB. existing debts and obligationsC. obligations that must be settled or paid at some time in the future by the transfer or assets or services.D. all of the above


You are watching: The retailer considers visa and mastercard sales as

Notes payable provide the lender...A. written documentation of the obligationB. interest incomeC. both written documentation and interest incomeD. none of the above
Assume the tax rate in your state is 8%. Your cash register doesn"t have a key for sales tax. However, the total amount of cash received for sales and sales tax during the month of June was $27,000. Sales for the month of June totaled...A. 24,840B. 25,000C. 27,000D. none of the above
All of the following would have unearned revenue except...A. the publisher of the Rolling Stone magazineB. Delta AirlinesC. the local Slurp and BurpD. the United States Postal Service
When the market rate of interest is greater than the contractual rate of interest...A. bonds will be issued at a premiumB. the financial strength of the issuer is exceptionalC. bonds will be issued at a discountD. the financial strength of the issuer is suspect
The cash inflows during the year that resulted from the principal portion of debt transactions in the...A. Financing activities section of the cash flow statementB. Operating activities section of the cash flow statementC. Investing activities section of the cash flow statementD. both a and b
The times interest earned ratio uses income before interest expense and taxes because...A. interest and taxes are important components in all ratio analysisB. paying interest and taxes does not affect a company"s solvency C. the ratio is easier to compute without these itemsD. this number best represents the amount available to pay interest
A bond issued at a premiumA. is issued by a corporation with an excellent credit ratingB. Has a stated rate of interest that exceeds the market rateC. sell at a price in excess of the face amount of the bondD. both has a stated rate of interest that exceeds the market rate and sell at a price in excess of the face amount of the bond
Discount on Bonds Payable...A. is a contra liabilityB. is an expenseC. is deducted from bonds payable on the balance sheetD. both is a contra liability and is deducted from bonds payable on the balance sheet
Contingencies must be accrued as liabilities if...A. the company can determine a reasonable estimate of the debtB. the amount is over $10,000C. it is probable the company will suffer a lossD. both the company can determine a reasonable estimate of the debt and it is probable the company will suffer a loss
The retailer considers Visa and MasterCard sales as...A. cash salesB. promissory salesC. credit salesD. contingent sales
The receivables turnover ratio is needed to calculate...A. the average collection period in daysB. market riskC. return on assetsD. current ratio
What is the cash realizable value of the accounts receivable at Dec 31 after adjustment?A. 1,370,000B. 1,500,000C. 1,600,000D. 1,470,000
Bad Debts are estimated to be 6% of outstanding receivables. What amount of bad debts expense will the company record?A. 67,140B. 45,840C. 44,562D. 68,418
When an account becomes uncollectible and must be written off...A. allowance for doubtful accounts should be creditedB. accounts receivable should be creditedC. bad debts expense should be creditedD. sales should be debited
When a company receives an interest-bearing note receivable, it willA. debit Note Receivable for the maturity value of the noteB. credit Notes Receivable for the maturity value of the noteC. debit Notes Receivable for the face value of the noteD. credit Notes Receivable for the face value of the note
ABC Company accepted a national credit card for a 2,500 purchase. The cost of the goods sold is 2,000. The credit card company charges a 3% fee. What is the impact of this transaction on net operating income?A. increase by 485B. increase by 500C. increase by 425D. increase by 2,425
A 90 day note dated April 30, 2010, would mature on:A. July 30, 2010B. July 29, 2010C. July 31, 2010D. August 1, 2010
When a note is dishonored, the payee"s entry includes a...A. debit to Interest RevenueB. credit to Accounts ReceivableC. debit to Interest ExpenseD. credit to Notes Receivable
A high receivables turnover ration indicates...A. the company"s sales are increasingB. a larger proportion of the company;s sales are on creditC. customers are making payments very quicklyD. customers are making payments slowly
{}})}else{;window.location.assign("https://slrfc.org/explanations/textbook-solutions/glencoe-accounting-first-year-course-1st-edition-9780078688294");}">
*

{}})}else{;window.location.assign("https://slrfc.org/explanations/textbook-solutions/corporate-finance-the-mcgraw-hillirwin-series-in-finance-insurance-and-real-estate-11th-edition-9780077861759");}">
*

Corporate Finance (The Mcgraw-Hill/Irwin Series in Finance, Insurance, and Real Estate)11th EditionBradford D. Jordan, Randolph W. Westerfield, Stephen A. Ross
{}})}else{;window.location.assign("https://slrfc.org/explanations/textbook-solutions/accounting-what-the-numbers-mean-10th-edition-9780078025297");}">
*

{}})}else{;window.location.assign("https://slrfc.org/explanations/textbook-solutions/the-economics-of-money-banking-and-financial-markets-11th-edition-9780133836790");}">


See more: Why Does 30Fps Look Better On Consoles, Why Does 30 Fps Look Better On Consoles

*