ACC 556 STR Course Great Wisdom / tutorialrank.com ACC 556 STR Course Great Wisdom / tutorialrank.com | Page 34

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