College Acct 1- Chapter 9

Front

What type of account is Unearned Revenue?

Back

Liability

Front

On December 1, Intrepid Company signed a 120-day, 4% note payable, with a face value of $15,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Back

$50

Front

The difference between the amount received from issuing a note payable and the amount repaid at maturity is referred to as:

Back

Interest

Front

On November 1, Collin Co. signed a 120-day, 6% note payable, with a face value of $7,000. What is the maturity value of the note on March 1?

Back

$7,140

Front

Contingent liabilities must be recorded if: The future event is probable and the amount owed can be reasonably estimated

Back

The future event is probable and the amount owed can be reasonably estimated

Front

If a professional sports team has advance ticket sales totaling $1,250,000 for the upcoming basketball season, the receipt of Cash would be journalized as:

Back

Debit Cash; Credit Unearned Revenue

Front

A contingent liability is:

Back

A potential obligation that depends on a future event arising from a past transaction or event.

Front

Which of the following best describes Accounts Payable? Options: Amounts owed to suppliers for goods and services received, Short-term liabilities, Always due within 60 days, Contingent liabilities, Not typically associated with specific due dates

Back

Amounts owed to suppliers for goods and services received

Front

Contingent liabilities are recorded or disclosed UNLESS they are: Remote, Reasonably possible, Probable and not estimable, Probable and estimable, Possible and estimable

Back

Remote

Front

Sales Taxes Payable is a(n) _____________ account with a ____________ balance.

Back

liability, credit