Question 1 A current liability must be paid out of current earnings . Question 2 Most notes are not interest bearing . Question 3
Unearned revenues are received before goods are delivered or services are rendered .
Question 4
The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account .
Question 5
Material gains or losses on bond redemption are reported as an extraordinary item on the income statement .
Question 6 Liabilities are classified on the balance sheet as current or Question 7
With an interest-bearing note , the amount of assets received upon issuance of the note is generally
Question 8
The interest charged on a $ 70,000 note payable , at the rate of 6 %, on a 90-day note would be
Question 9
On January 1 , 2014 , Keisler Company , a calendar-year company , issued $ 700,000 of notes payable , of which $ 175,000 is due on