9. For a liability to exist, a past transaction or event must have occurred. the exact amount must be known. the identity of the party owed must be known. an obligation to pay cash in the future must exist. a. b. c. d.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Please answer following
![: AEINAC2 MIDTERM X
L aeinac2_midterm.ht x
G A liability is recorde X
O AEINAC2 MIDTERM X
A Meet - swt-pftr
My Questions | bart x +
O File | C:/Users/IDEAPAD%203%20i5/Downloads/aeinac2_midterm.htm
Multiple Choice
Identify the choice that best completes the statement or answers the question.
9. For a liability to exist,
a past transaction or event must have occurred.
the exact amount must be known.
а.
b.
the identity of the party owed must be known.
an obligation to pay cash in the future must exist.
с.
d.
v 10. The effective interest rate on bonds is higher than the stated rate when bonds sell
а.
at face value.
b.
above face value.
below face value.
с.
d.
at maturity value.
11. The effective interest rate on bonds is lower than the stated rate when bonds sell
at maturity value.
above face value.
а.
b.
с.
below face value.
d.
at face value.
12. When interest expense is calculated using the effective-interest amortization method, interest expense (assuming that interest is paid annually) always equals the
actual amount of interest paid.
book value of the bonds multiplied by the stated interest rate.
book value of the bonds multiplied by the effective interest rate.
maturity value of the bonds multiplied by the effective interest rate.
а.
b.
с.
d.
13. On July 1, 2002, TJR issued 2,000 of its 8 percent, $1,000 bonds for $1,752,000. The bonds were issued to yield 10 percent. The bonds are dated July 1, 2002, and mature on July 1,
2012. Interest is payable semiannually on January 1 and July 1. Using the effective-interest method, how much of the bond discount should be amortized for the six months ended
December 31, 2002?
$15,200
$12,400
$9,920
$7,600
а.
b.
с.
d.
14
2002
Lotonaat mo nt datas n the ho de La 1 nd Lul.. 1
The e ma ant
i to be
1:06 pm
G 1») O ENG
02/03/2022
...](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffac2835c-3410-4b9c-b34a-3e9b1fa84304%2F743e557e-d270-48b4-bbc5-acb9e9568840%2Ft37svln_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)