WorksheetsAcct 201 Chapter 11
Total questions: 12
Worksheet time: 6mins
Name
Class
Date
1.
A long term liability is a debt that a company expects to pay within one year or the operating cycle, whichever is longer.
a)
True
b)
False
c)
I don't know I better read the chapter
2.
An obligations in the form of written notes that give the lender formal proof of the obligation in case legal remedies are needed to collect the debt should be classified as
a)
accounts payable
b)
notes payable
c)
mortgage payable
3.
When a company receives the advance payment for goods or services, it should be recorded as a credit to
a)
accounts payable
b)
unearned revenue
c)
revenue
d)
expense
4.
A potential liability that may become an actual liability in the future is called a(n)
a)
contingent liability
b)
accounts payable
c)
unearned revenue
d)
none of these
5.
If the contingency is probable (if it is likely to occur) and the amount can be reasonably estimated, the liability should be recorded in the accounts.
a)
True
b)
False
6.
If the contingency is remote (if it is unlikely to occur), it needs to be recorded and disclosed.
a)
True
b)
False
c)
I don't know I better read the chapter
7.
The estimated cost of honoring product warranty contracts should be recognized as an expense in the period in which
a)
the work is performed
b)
the sale occurs
c)
company receives payment
8.
A measure of a company's liquidity; computed as current assets divided by current liabilities is called
a)
current ratio
b)
working capital
c)
return on equity
d)
debt to equity ratio
9.
Gross pay and net pay are the same thing.
a)
True
b)
False
10.
Mandatory deductions are required by law and consist of FICA taxes and income taxes
a)
True
b)
False
11.
FICA is paid by both the employee and the employer
a)
True
b)
False
12.
Federal and State Unemployment taxes are paid by the employee.
a)
True
b)
False
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