ACCT final

Which of the following statements regarding liabilities is not true

• liabilities can be for services rather than cash

• liabilities are reported in the balance sheet for amost every business

• liabilities result from future transactions

• liabilities represent probable future sacrifices of benefits

current liabilities

• may include contingent liabilities

• include obligations payable within one year or one operating cycle, whichever is shorter

• can be satisfied only with the payment of cash

• are preferred by most companies over long term liabilities

express jet borrows $100 million on October 1, 2024, for one year at 6% interest. for what amount does express jet report interest payable for the year ended december 31, 2024?

• $0

• $4.5 million

• $1.5 million

• $6 million

express jet borrows $100 million on october 1, 2024, for one year at 6% interest. for what amount does express jet report interest expense for the year ended december 31,2025

• $0

• $4.5 million

• $1.5 million

• $6 million

we record interest expense on a note payable in the period in which

• we pay cash for interest

• we incur interest

• we pay cash and incur itnerest

• we pay cash of incur interest

which of the following is not deducted from an employees salary

• FICA taxes

• unemployment taxes

• income taxes

• employee portion of insurance and returement payments

a local starbucks sells gift cards of $10,000 during the year. by the end of the year, customers have redeemed $8,000 of gift cards. what will be the year end balance in the deferred revenue account

• $0

• $2,000

• $8,000

• $10,000

the seller collects sales taxes from the customer at the time of sale and reports the sales taxes as

• sales tax expense

• sales tax revenue

• sales tax receivable

• sales tax payable

the city of summerton has a sales tax of 8%. a local convenience store sells merchandise, and the customer pays a total of $38.34. what effect does this transaction have on total liabilities

• increase of $3.07

• decrease of $38.34

• increase of $2.84

• no effect

management can estimate the amount of loss that will occur due to litigation against the company. if the likelihood of loss is reasnbly possible, a contingent liability should be

• disclosed but not reported as a liability

• disclosed and reported as a liability

• neither disclosed nor reported as a liability

• reported as a liability but not disclosed