MCQs 2 Liabilities are usually listed in order of magnitude, from smallest dollar amount to largest dollar amount.  True  False

Q: three primary types of current liabilities. What are they?

A: The current liabilities are obligations that are meant to be paid by the company within one year.

Q: In 150 words or fewer, explain how contingent liabilities are accounted for.

A: Contingent Liability:   Contingent liability refers to any potential liability that can occur…

Q: TRUE OR FALSE 5.Trade payables are normally presented as current liabilities.

A: Trade payables are the payments that the company owes to its supplier and vendor. It occurs when a…

Q: Liabilities which are estimated and payable are; Select one: O a. Not reported on the balance sheet…

A: Liabilities represents the obligation of the entity. It is the amount which is to be paid by the…

Q: Liabilities are usually listed in order of magnitude, from smallest dollar amount to largest dollar…

A: Liabilities are legal financial debt or obligation arises during the course of business operations…

Q: Transaction risk happens when there is a default payment on the delivery date by one party, causing…

A: Transaction risk is the risk related with exchange rate fluctuations between agreement and…

Q: A trial balance shows a subtotal for current assets and current liabilities.   True or False

A: Trial balance: It is the statement prepared at the end of the year to close all the accounts. The…

Q: Give examples of the 4 types of current liabilities and how can it be explained in each scenarios

A: Introduction:- Current liabilities:- Current liabilities means companies are required to be settled…

Q: Current liabilities normally are recorded at their: Select one: O a. Expected value. O b. Present…

A: Current liabilities are the financial obligations of the company which are required to be settled…

Q: 7. Which of the following accounts is an liability? a. Bank deposit b. Prepaid insurance expense c.…

A: Liability is an obligation for a business. It arises when anything is payable in future or any…

Q: 3. A liability created for receiving cash for future services to be provided is termec Oservice…

A: The accrual basis accounting records the revenue and expenses as soon as they are incurred…

Q: When a liability is paid, which account should be credited? A, Cash B.Accounts payable

A: Cash (money or coins) is legal tender that may be used to exchange products, debts, or services. It…

Q: On the balance sheet, liabilities are generally classified as a. current or long term b. legal or…

A: Current Liabilities Long term liabilities

Q: Debt Coverage Ratio O DCR = DS ÷ EGI O DCR = GSI - OP EX %3D O DCR = NOI÷DS O DCR = GSI - VAC %3D

A: Mostly in business, government, and personal finance, the debt-service coverage ratio is used. In…

Q: Chapter 10, Question 16: What are contingent liabilities? List three examples of contingent…

A: Contingent liabilities are the liabilities which will arise on the happening or not unhappening of…

Q: Accounts receivable is ______________ of an organization. a. Current assets b. Current liabilities…

A: Current assets are all the assets of a company that are expected to be converted into the cash…

Q: 3. Explain the current liability “Accrued and other current liabilities.”

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What are the audit procedures used to identify contingent liabilities?

A:

Q: KD Calculation details (recommended): d. Calculate total non-current liabilities.

A: The equity and liabilities must be equal to total assets over the period of time and this is basic…

Q: List four examples of interest-bearing liability accounts commonlyfound in balance sheets. What…

A: Liability:   A liability is the money owed by the business towards outside entities. Liabilities…

Q: A-Receivable Financing  3. Identification. If the proceeds from discounting is less than the…

A: Discount with Recourse In Discount with recourse it is upto the decision from the bank to make the…

Q: 1. What should be reported as total current liabilities? 2. What amount should be reported as total…

A: Current liabilities- Current liabilities are obligations to be paid in one year. These are given on…

Q: 12) In the Allowance Method when we we collect on a previously written off receivableA) Assets stay…

A: when we previously write off receivable , net income of the company decreases Now when the amount…

Q: TRUE OR FALSE? 1. Current assets less current liabilities equals net assets.

A: Net assets Net assets are the value of a company’s assets minus its liabilities. It is calculated…

Q: We credit Dividends Payable on: a. Payment date. b. Record date.c. Declaration date. d. Never.

A: Dividend is the return earned by the shareholders upon the investment made into the company. It is…

Q: Debit interest payments are added to revenue but subtracted from outlays. Select one: True False

A: Since you have posted multiple questions, we will do the first one for you. To get the other…

Q: 21 - Which of the following is one of the features of resource accounts? A) They give the remainder…

A: Account is referred as the record or an arrangement through which a customer’s financial assets are…

Q: How are liabilities classified? Why is it important to classify liabilities?

A: Liabilities are classified as  1. Current liabilities - Liabilities that will be due for payment in…

Q: Question 2 What is the definition of liability on the Balance Sheet? the toolbar, press ALT+F10 (PC)…

A: For running a business, owner or investors will have to purchase assets or resources for which its…

Q: Current liabilities are usually recorded and reported in financial statements at their ful maturity…

A: Financial statements: Financial statements are the final reports of a company, prepared at the end…

Q: 33. Contingent liabilities are:* Disclosed in the notes unless the possibility of an outflow of…

A: A liability whose occurrence depends upon the happening or non happening of future uncertain events…

Q: Determine the missing amount for each of the following: Assets Liabilities Owner's Equity a.…

A: Accounting equation is the relationship between Assets and liabilities or equity and how a…

Q: 1. Subsequent to initial recognition, accounts receivable should be carried at a. Face Value c.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…