Accounting Help ASAP?
23. A current liability is a debt that can reasonably be expected to be
paid
a. between 6 months and 18 months.
b. out of currently recognized revenues.
c. within one year.
d. out of cash currently on hand.
24. Gray County Bank agrees to lend the Starkwood Building Company $100,000 on January 1. Starkwood Building Company signs a $100,000, 9%, 9-month note. The entry made by Starkwood Building Company on January 1 to record the proceeds and issuance of the note is
a. Interest Expense 9,000
Cash 91,000
Notes Payable 100,000
b. Cash 100,000
Notes Payable 100,000
c. Cash 100,000
Interest Expense 9,000
Notes Payable 109,000
d. Cash 100,000
Interest Expense 9,000
Notes Payable 109,000
Interest Payable 4,500
25. The journal entry to record the conversion of an $250 accounts payable to a notes payable would be:
a. Jan 31 Cash 250
Notes Payable 250
b. Jan 31 Notes Receivable 250
Notes Payable 250
c. Jan 31 Notes Payable 250
Cash 250
d. Jan 31 Accounts Payable 250
Notes Payable 250
26. The current portion of long-term debt should
a. be classified as a long-term liability.
b. not be separated from the long-term portion of debt.
c. be paid immediately.
d. be reclassified as a current liability.
27. The amount of federal income taxes withheld from an employee's gross pay is recorded as a(n)
a. payroll expense
b. contra account
c. asset
d. liability
28. Which of the following taxes would be deducted in determining an employee's net pay?
a. FUTA taxes
b. SUTA taxes
c. FICA taxes
d. all of the above
29. The total earnings of an employee for a payroll period is referred to
as
a. take-home pay
b. pay net of taxes
c. net pay
d. gross pay
30. Which of the following are included in the employer's payroll taxes?
a. SUTA taxes
b. FUTA taxes
c. FICA taxes
d. all of the above
31. The cost of a product warranty should be included as an expense
in the
a. period the cash is collected for a product sold on account
b. future period when the cost of repairing the product is paid
c. period of the sale of the product
d. future period when the product is repaired or replaced
32. Estimating and recording product warranty expense in the period of the sale best follows which of the following accounting concepts?
a. Cost concept
b. Business entity concept
c. Matching Concept
d. Materiality concept