ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 143

b. 2
c. 3
d. Both 2 and 3 are true.
24. Among the short-term obligations of Lance Company as of
December 31, the balance sheet date, are notes payable totaling
$250,000 with the Madison National Bank. These are 90-day notes,
renewable for another 90-day period. These notes should be
classified on the balance sheet of Lance Company as
a. current liabilities.
b. deferred charges.
c. long-term liabilities.
d. intermediate debt.
25. Which of the following is not true about the discount on short-
term notes payable?
a. The Discount on Notes Payable account has a debit balance.
b. The Discount on Notes Payable account should be reported as an
asset on the balance sheet.
c. When there is a discount on a note payable, the effective interest
rate is higher than the stated discount rate.
d. All of these are true.
26.
Which of the following may be a current liability?
a. Withheld Income Taxes