Use the following to answer questions 1– 5Reporting MethodA. Current LiabilityB. Long term liabilityC. Disclosure note onlyD. Not reportedSelect the correct reporting method for each of the itemslisted below:1.Accounts payableBond payable.3.Sales tax collected from customers.4.Unused line of credit.A contingent liability with a reasonablypossible likelihood of occurring within the next5.year and cannot be estimated.2.

Balance sheet: Balance sheet is an accounting report that furnishes an overall financial status of a…

Use the following to answer questions 1 – 5 Reporting Method A. Current Liability B. Long term liability C. Disclosure note only D. Not reported Select the correct reporting method for each of the items listed below: 1. Accounts payable 2. Bond payable. 3. Sales tax collected from customers. 4. Unused line of credit. A contingent liability with a reasonably possible likelihood of occurring within the next 5. Year and cannot he estimated

Use the following to answer questions 1 – 5 Reporting Method A. Current Liability B. Long term liability C. Disclosure note only D. Not reported Select the correct reporting method for each of the items listed below: 1. Accounts payable 2. Bond payable. 3. Sales tax collected from customers. 4. Unused line of credit. A contingent liability with a reasonably possible likelihood of occurring within the next 5. Year and cannot he estimated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The estimated warranty obligation at the end of the financial year is best described as a A. Uncertain liability OB. Contingent liability O C. Liability O D. Constructive liability OE. Unrecognized liability
Which of the following is most likely to be classified and reported as a current liability? a. Prepaid Expense b. Bond Payable c. Mortgage Payable d. Unearned Revenue O None of the above
Question: 1. Under the allowance method, Accounts recorded Uncollectible Expense is a. for an estimated amount. b. when an individual account is written off. c. for a known amount. d. several times during the accounting period.
When the amount of rebate on bills discounted shown in the adjustments, then it has to be: a. Deducted from discounts received on bills and shown in other liabilities b. Deducted from discounts on bills purchased and shown in fixed assets c. Deducted from discounts received on bills and shown in other assets d. Added to discounts received on bills and shown in other liabilities
Alternative Accounting Treatments a. Estimate the amount of liability and record. b. Do not record as a liability but disclose in a footnote to the financial statements. c. Neither record as a liability nor disclose in a footnote to the financial statements. Required: Match the appropriate alternative accounting treatment with each of the potential contingent liabilities listed below. Potential Contingent Liabilities 1. Income taxes related to revenue included in net income this year but taxable in a future year. 2. Potential costs in future periods associated with performing warranty services on products sold this period. 3. Estimated cost of future services under a product warranty related to past sales. 4. Estimated cost of future services under a product warranty related to future sales. 5. Estimated cost of pension benefits related to past employee services that has yet to be funded. 6. Potential loss on environmental cleanup suit against company; a court judgment against the…
Which of the following types of adjusting entries would result in a decrease in the amount of a one-year insurance policy premium reported on the balance sheet? Select one: O a. Prepaid expense b. Accrued expense C. Accrued revenue d. Unearned revenue
Accounting for liabilities involves recording and managing obligations a company owes to external parties. Liabilities are classified based on their nature and timing of settlement. Common types include: Current Liabilities: Debts or obligations expected to be settled within one year or the operating cycle, whichever is longer. Examples include accounts payable, accrued expenses, and short-term loans. Long-Term Liabilities: Obligations not due within the next operating cycle or one year. Examples include long-term loans, bonds payable, and lease obligations. Contingent Liabilities: Potential obligations that depend on a future event, such as lawsuits or warranties. They are disclosed in the footnotes of financial statements unless the likelihood of payment is remote. Deferred Revenue: Payments received in advance for goods or services to be provided in the future. They are recorded as liabilities until the revenue recognition criteria are met. Accrued Liabilities: Expenses…
49The collection of debtors’ accounts has the following effect on the financial statements: A. Increases income. B. None of the options provided. C. Increases owners' equity. D. Increases total assets.
When an advance collection of income has been recorded under the liability method, an adjusting entry is needed to recognize the increase in the balance of the real account. O decrease in the balance of the nominal account. earned portion of the precollection O unearned portion of the precollection.