Chapter 9 And Ch. 10 Quiz
FSU, ACG2021 Jeff Paterson (online)
Questions with Guaranteed Pass
Solutions 2025-2026 Updated.
Bonds Payable - Answer Which of the following is least likely would be classified as a current
liability?
A company reports the following selected accounts and balances after posting adjusting entries:
Accounts payable, $16,000
Nine months, 8%, note payable, $46,000
Income tax expense, $5000
Salaries and wages expense: $23,000
Three-year, 10% note payable, $200,000
Salaries and wages payable: $10,000
Mortgage payable ($22,000 due next year), $1 million
Rent payable: $8000
If its current assets are at $210,000 at your end, How much is the current ratio up at your end?
1.96
1.62
2.12
2.06 - Answer 2.06
On October 1, the company borrowed $50,000 from the bank for four months at 8%. Interest
was properly accrued on December 31. The journal entry needed to record the payment of the
note and interest on the due date includes - Answer A debit to interest payable for $1000
(principal) x (annual interest rate) x (time period) - Answer Equation for Interest
,(current assets at year-end) / (current liabilities) - Answer Equation for current ratio
A company issued a $300,000, 6%, nine-month note on July 1; it has a December 31 year end.
The entry made by the company on July 1 to record the issuance of the note is: - Answer
Debit Cash: $300,000
Credit Notes Payable: $300,000
The company receives $192, of which $16 is for sales tax. The journal entry to record the sale
with sales tax would include - Answer Credit sales taxes payable for $16
On November 1, 2021, a company issued a note payable of $100,000, of which $10,000 will be
repaid each year. What is the proper classification of the note on the company's December 31,
2022, balance sheet? - Answer $10,000 current liabilities; $80,000 long-term liability
The company sells annual magazine subscriptions, and it publishes eight magazines each year.
The company sells 45,000 subscriptions in December at $10 each. What journal entry is made in
December to record the sale of the subscription? - Answer Debit To the cash account for
$450,000 and a credit to the unearned revenue account for $450,000
The following totals for the month of June were taken from the payroll records of certain
companies:
Wages, $100,000
FICA taxes withheld it, $7,650
FEDERAL INCOME TAX IS WITHHELD, $18,000
FEDERAL UNEMPLOYMENT TAXES, $450
STATE INCOME TAX IS WITHHELD, $3,000
State unemployment taxes: $2,100
The entry to record employer payroll taxes would include a debit to payroll tax expenses in the
amount of: - Answer $71,350
In its first year, a company made sales of $100,000 on account. All of the customers paid their
accounts before year-end. The merchandise sold is subject to product warranties. The company
assumes that warranty costs will be 3% of sales. During the same year, the company replaced
$2000 of defective warranted products. it expects to replace $1000 of the merchandise sold in
the first year? In the second year, the company uses the actual method of accounting. Which of
the following is true? - Answer The company's warranty expense in the first year is $3000
All of these are true
,(Sales of warranted products) x (estimated warranty cost as a percentage of sales) - Answer
Warranty expense
In the current year, the corporation had a net income of $120,000, an interest expense of
$20,000, and a tax expense of $25,000. It's net sales were $1 million and the cost of goods sold
was $400,000 what was the interest earned for the year? - Answer 8.25
(Net income + Interest expense + tax expense) / (interest expense) - Answer Equation for
interest earned for the year
Which of the following most likely would be classified as a current liability?
Notes payable in 2 years
bonds payable in 10 years
accounts payable due in 30 days
all of these
mortgage payable due in 30 years - Answer Accounts payable due in 30 days
A company borrowed $7,000 on July 1 by issuing a 36-month, 10% note. Both the note and the
interest will be paid when the note matures. Which statement is true on December 31? -
Answer The company has $350 of interest payable, that is a long-term liability
What company is she say to her thousand 6% six month note. Is your not to work first. The
company is a December 31 year-end It always records year and adjusting entries properly. What
entry will the company record on March 31 when the note matures? - Answer Debit Notes
payable
Debit interest payable
Debit interest expense
Credit cash
, A company does not segregate sales and sales taxes when it charges customers at the register;
it's total forgiven day is $4,515, which includes a 5% sales tax. How much should be recognized
as sales revenue and sales tax payable? - Answer $4,300 and $215
(Total cash) / (1 + sales tax rate) - Answer amount of sales
On May 1, a company collected a $21,000 advance payment from a customer. The company will
earn the payment over 12 months. What amount should the company report as a current
liability at the end of the current year calendar - Answer $7,000 (4/12 * 21,000)
A company operates a consulting practice. New clients are required to pay the firm in two
transactions. First, client Thomas pays Thomas a hundred dollars before receiving consulting
services. Second, clients must pay $900 when the consulting firm finishes providing services to
them. Have the company account for the second transaction? - Answer Debit the cash
account for $900, debit to unearned revenue account for $100, and credit the service revenue
account for $1000
Wage is $100,00
FICA taxes withheld, 7650
Federal income taxes withheld, 17,000
State income tax withheld, $2000
Federal unemployment taxes, $550
State unemployment taxes $3100
Entry to record employers payroll taxes would include a debit to payroll taxes expense in the
amount of: - Answer $11,300
In the current year, corporation has a time interest earnings ratio of 8.0. Its interest expense is
$40,000 in tax expense is $50,000 it's net sales were $500,000 and it cost of good sold for
$200,000 what was the company's net income? - Answer $230,000
The company borrowed $700,000 on December 1 by issuing a 24 month, 11% note. Both note
and interest will be paid when the note pictures which statement is true at Decembe - Answer
The company has $6417 of interest payable, that is a long-term liability
use interest payable equation
The cash register tape indicate sales are $1500 in sales taxes are $100. What journal entry is
needed to record this information - Answer Debit the cash count for $1600 credit sales tax
account for $1500 in credit the sales tax payable for $100
FSU, ACG2021 Jeff Paterson (online)
Questions with Guaranteed Pass
Solutions 2025-2026 Updated.
Bonds Payable - Answer Which of the following is least likely would be classified as a current
liability?
A company reports the following selected accounts and balances after posting adjusting entries:
Accounts payable, $16,000
Nine months, 8%, note payable, $46,000
Income tax expense, $5000
Salaries and wages expense: $23,000
Three-year, 10% note payable, $200,000
Salaries and wages payable: $10,000
Mortgage payable ($22,000 due next year), $1 million
Rent payable: $8000
If its current assets are at $210,000 at your end, How much is the current ratio up at your end?
1.96
1.62
2.12
2.06 - Answer 2.06
On October 1, the company borrowed $50,000 from the bank for four months at 8%. Interest
was properly accrued on December 31. The journal entry needed to record the payment of the
note and interest on the due date includes - Answer A debit to interest payable for $1000
(principal) x (annual interest rate) x (time period) - Answer Equation for Interest
,(current assets at year-end) / (current liabilities) - Answer Equation for current ratio
A company issued a $300,000, 6%, nine-month note on July 1; it has a December 31 year end.
The entry made by the company on July 1 to record the issuance of the note is: - Answer
Debit Cash: $300,000
Credit Notes Payable: $300,000
The company receives $192, of which $16 is for sales tax. The journal entry to record the sale
with sales tax would include - Answer Credit sales taxes payable for $16
On November 1, 2021, a company issued a note payable of $100,000, of which $10,000 will be
repaid each year. What is the proper classification of the note on the company's December 31,
2022, balance sheet? - Answer $10,000 current liabilities; $80,000 long-term liability
The company sells annual magazine subscriptions, and it publishes eight magazines each year.
The company sells 45,000 subscriptions in December at $10 each. What journal entry is made in
December to record the sale of the subscription? - Answer Debit To the cash account for
$450,000 and a credit to the unearned revenue account for $450,000
The following totals for the month of June were taken from the payroll records of certain
companies:
Wages, $100,000
FICA taxes withheld it, $7,650
FEDERAL INCOME TAX IS WITHHELD, $18,000
FEDERAL UNEMPLOYMENT TAXES, $450
STATE INCOME TAX IS WITHHELD, $3,000
State unemployment taxes: $2,100
The entry to record employer payroll taxes would include a debit to payroll tax expenses in the
amount of: - Answer $71,350
In its first year, a company made sales of $100,000 on account. All of the customers paid their
accounts before year-end. The merchandise sold is subject to product warranties. The company
assumes that warranty costs will be 3% of sales. During the same year, the company replaced
$2000 of defective warranted products. it expects to replace $1000 of the merchandise sold in
the first year? In the second year, the company uses the actual method of accounting. Which of
the following is true? - Answer The company's warranty expense in the first year is $3000
All of these are true
,(Sales of warranted products) x (estimated warranty cost as a percentage of sales) - Answer
Warranty expense
In the current year, the corporation had a net income of $120,000, an interest expense of
$20,000, and a tax expense of $25,000. It's net sales were $1 million and the cost of goods sold
was $400,000 what was the interest earned for the year? - Answer 8.25
(Net income + Interest expense + tax expense) / (interest expense) - Answer Equation for
interest earned for the year
Which of the following most likely would be classified as a current liability?
Notes payable in 2 years
bonds payable in 10 years
accounts payable due in 30 days
all of these
mortgage payable due in 30 years - Answer Accounts payable due in 30 days
A company borrowed $7,000 on July 1 by issuing a 36-month, 10% note. Both the note and the
interest will be paid when the note matures. Which statement is true on December 31? -
Answer The company has $350 of interest payable, that is a long-term liability
What company is she say to her thousand 6% six month note. Is your not to work first. The
company is a December 31 year-end It always records year and adjusting entries properly. What
entry will the company record on March 31 when the note matures? - Answer Debit Notes
payable
Debit interest payable
Debit interest expense
Credit cash
, A company does not segregate sales and sales taxes when it charges customers at the register;
it's total forgiven day is $4,515, which includes a 5% sales tax. How much should be recognized
as sales revenue and sales tax payable? - Answer $4,300 and $215
(Total cash) / (1 + sales tax rate) - Answer amount of sales
On May 1, a company collected a $21,000 advance payment from a customer. The company will
earn the payment over 12 months. What amount should the company report as a current
liability at the end of the current year calendar - Answer $7,000 (4/12 * 21,000)
A company operates a consulting practice. New clients are required to pay the firm in two
transactions. First, client Thomas pays Thomas a hundred dollars before receiving consulting
services. Second, clients must pay $900 when the consulting firm finishes providing services to
them. Have the company account for the second transaction? - Answer Debit the cash
account for $900, debit to unearned revenue account for $100, and credit the service revenue
account for $1000
Wage is $100,00
FICA taxes withheld, 7650
Federal income taxes withheld, 17,000
State income tax withheld, $2000
Federal unemployment taxes, $550
State unemployment taxes $3100
Entry to record employers payroll taxes would include a debit to payroll taxes expense in the
amount of: - Answer $11,300
In the current year, corporation has a time interest earnings ratio of 8.0. Its interest expense is
$40,000 in tax expense is $50,000 it's net sales were $500,000 and it cost of good sold for
$200,000 what was the company's net income? - Answer $230,000
The company borrowed $700,000 on December 1 by issuing a 24 month, 11% note. Both note
and interest will be paid when the note pictures which statement is true at Decembe - Answer
The company has $6417 of interest payable, that is a long-term liability
use interest payable equation
The cash register tape indicate sales are $1500 in sales taxes are $100. What journal entry is
needed to record this information - Answer Debit the cash count for $1600 credit sales tax
account for $1500 in credit the sales tax payable for $100
