Q-Q4CRMa

Companies charge warranty costs only to the period in which the customers use the warranty.

• T

• F

Prepaid insurance should be included in the numerator when computing the current ratio.

• T

• F

A customer advance produces a liability that is satisfied when the product or service is provided.

• T

• F

Present value of interest plus present value of principal is the usual valuation of long-term liabilities.

• T

• F

The cash paid for interest will always be greater than interest expense when using effective-interest amortization for a bond.

• T

• F

Which of the following is NOT a current liability?

• Income Taxes Payable

• Deposits Received from Customers

• Deferred Revenue

• Deferred Expense

The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the

• bond indenture.

• bond debenture.

• registered bond.

• bond coupon.

Ordinary share capital represents the residual ownership interest in a corporation.

• T

• F

The Articles of Incorporation govern the internal administration of the organization.

• T

• F

An ordinary share is given priority over an ordinary share with respect to dividend distribution.

• T

• F