You are watching: Many current liabilities are affected by accrual accounting entries. this happens because:
The adjusting entry come accrue Interest cost results in:an rise in interest Expense.a decrease in interest Expense.a decrease in Cash.a to decrease in interest Payable.
An accounts Payable normally results from which the the following transactions?Purchasing accounts because that cash.Purchasing property, plant and equipment ~ above credit.Purchasing goods and also services from carriers on credit.All that the above.
A transaction the is likely to cause an increase in a current liability is:accrual of attention expense.accrual of poor debts expense.payment of accrued wages.depreciation of equipment.
The liability because that product warranty cases is an example of a liability that:has been calculated making use of estimates.has been tape-recorded in the process of equivalent revenue and also expense.also resulted in a palliation of net income.all that the above.
Many existing liabilities are influenced by accrual accounting entries. This wake up because:accrual accountancy involves recognizing liabilities prior to they are paid.the only method to reduce a legal responsibility account balance is with an adjusting entry.accrual audit frequently involves recognizing liabilities prior to they room incurred.liabilities are usually paid once they room incurred.
The present liability for earnings Payable (or Accrued Payroll) to represent the:gross pay earned through employees for which they have not yet been paid.net salary earned through employees because that which they have not however been paid.employer"s federal and also state payroll taxes obligation.employer"s legal responsibility for miscellaneous withholdings the taken the end of the gross salary earned by employees.
The payment that a existing liability will:decrease functioning capital.increase functioning capital.decrease network income.not influence working capital.
A newspaper publisher has an account dubbed "Unearned Subscription Revenue." The transaction that causes the balance the this account come decrease is:cash is obtained from brand-new subscribers.magazines are published for the publisher.magazines space mailed to subscribers.subscriptions are marketed to brand-new subscribers.
A working resources loan will certainly generally:not have actually an interest rate.not impact working capital.be classified together a noncurrent liability.require that attention (if any) be payment monthly.
The adjusting entry come accrue Interest expense results in:a to decrease in interest Payable.an rise in interest Expense.a diminish in Cash.a diminish in attention Expense.
Interest on a note Payable is most as necessary accrued:when the note is signed.as that the end of every accounting duration during i beg your pardon the note is a liability.when the attention is paid.when primary payments on the note are made.
All the the adhering to are examples of "accrued expense" types of liabilities other than the liability for: A) temporary notes taken out at a bank during the year. B) payroll taxes owed by the employer because that the year. C) building taxes fan to local governments for the year. D) salaries and also wages owed to employees at the end of the year. E) approximated product warranty expenses on commodities sold throughout the year.
When choosing between issuing usual stock and issuing bonds, supervisors of corporations have to take right into account: A) the tax advantages to the company of deducting the interest expenses on bonds. B) the demands placed upon their company by stockholders who expect to be payment quarterly dividends. C) the risks associated with having actually to make resolved interest payments on bonds at predetermined times. D) the impact that the selection will have on your company"s leverage. E) every one of the over are considerations.
The recognition of liabilities frequently results in: A) the acknowledgment of expenses. B) a an ext conservative representation of financial position. C) a to decrease in network income. D) a to decrease in ROI. E) all of the above.
Which the the following is not generally classified as a present liability? A) accounts Payable. B) note Payable. C) bonds Payable. D) Unearned Subscription Revenue. E) attention Payable.
In recommendation to the Discount on binding Payable and also Premium on binding Payable accounts, which statement is true? A) The Discount ~ above the bonds Payable account is a contra asset. B) The Discount top top the bonds Payable account reduces working capital. C) The Discount top top the bonds Payable account is amortized through a credit entry every period. D) as the Premium on bonds Payable account is amortized every period, the Interest expense account is raised to the amount it would have actually been, had actually the bonds been offered at par. E) The premium on bonds Payable account is a contra liability.
When get loan money, the most vital objective the the borrower should be to: A) minimize monthly payments. B) minimize the APR. C) protect against borrowing on a discount basis. D) make the maturity day as much in the future as possible. E) reading all of the covert terms and conditions.
Interest on a note payable is most accordingly accrued: A) when the note is signed. B) as of the finish of every accounting period during i m sorry the note is a liability. C) as soon as principal payments on the keep in mind are made. D) as soon as the attention is paid. E) at the maturity day of the note.
Which the the complying with is (are) a true statement(s) pertaining to bonds? A) Bonds can be offered at a discount, par, or payable. B) Bonds deserve to be marketed at a discount, par, or premium. C) The SEC sets the sector price of a bond. D) The issuing for sure sets the price of a bond. E) none of the above.
Financial leverage refers to which of the following? A) The difference in between the rate of return earned on legacy (ROI) and also the price of return earned on stockholders" same (ROE). B) The difference in between the rate of return deserve on current assets and the rate of return earn on preserved earnings. C) The leverage a for sure obtains from raising production. D) decreasing fixed costs per unit by raising production. E) none of the above.
The difference in between the price of return deserve on assets (ROI) and also the rate of return earn on stockholders" equity (ROE).
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Consolidated gaue won statements to express to: A) gaue won statements report on one industry-wide basis. B) The parent"s and also subsidiary"s gaue won statements are reported ~ above a different basis. C) The parent"s and subsidiary"s jae won statements room reported on a an unified basis. D) The parent"s and also subsidiary"s gaue won statements are reported ignoring interest, depreciation, and also taxes. E) no one of the above.