You are watching: A transaction that is likely to cause an increase in a current liability is:
The adjusting entry to accrue Interest expense results in:an rise in interest Expense.a decrease in attention Expense.a decrease in Cash.a diminish in interest Payable.
An accounts Payable normally results native which that the complying with transactions?Purchasing accounts for cash.Purchasing property, plant and also equipment on credit.Purchasing goods and services from providers on credit.All that the above.
A transaction that is most likely to cause an increase in a current liability is:accrual of attention expense.accrual of bad debts expense.payment that accrued wages.depreciation that equipment.
The liability because that product warranty claims is an instance of a legal responsibility that:has to be calculated utilizing estimates.has been tape-recorded in the procedure of equivalent revenue and also expense.also resulted in a palliation of net income.all of the above.
Many current liabilities are impacted by accrual bookkeeping entries. This wake up because:accrual accountancy involves recognizing liabilities before they are paid.the only way to reduce a liability account balance is through an adjusting entry.accrual accounting frequently requires recognizing liabilities before they are incurred.liabilities space usually paid when they space incurred.
The current liability for salaries Payable (or Accrued Payroll) represents the:gross pay earned by employees because that which they have actually not yet been paid.net salary earned by employees for which they have not however been paid.employer"s federal and state payroll taxes obligation.employer"s liability for miscellaneous withholdings that taken the end of the gross pay earned by employees.
The payment the a existing liability will:decrease working capital.increase functioning capital.decrease net income.not affect working capital.
A newspaper publisher has an account called "Unearned Subscription Revenue." The transaction that reasons the balance of this account come decrease is:cash is received from new subscribers.magazines are published for the publisher.magazines are mailed come subscribers.subscriptions are marketed to new subscribers.
A working capital loan will generally:not have actually an interest rate.not affect working capital.be classified together a noncurrent liability.require that interest (if any) be paid monthly.
The adjusting entry come accrue Interest price results in:a decrease in attention Payable.an boost in interest Expense.a diminish in Cash.a to decrease in interest Expense.
Interest ~ above a keep in mind Payable is most appropriately accrued:when the keep in mind is signed.as that the finish of every accounting duration during which the keep in mind is a liability.when the interest is paid.when primary payments ~ above the keep in mind are made.
All the the following are examples of "accrued expense" varieties of liabilities other than the legal responsibility for: A) temporary notes taken out at a financial institution during the year. B) payroll taxes owed by the employer because that the year. C) residential property taxes fan to local governments for the year. D) salaries and wages fan to employees at the end of the year. E) estimated product warranty prices on products sold during the year.
When choosing between issuing common stock and issuing bonds, supervisors of corporations should take right into account: A) the tax advantages to the firm of deducting the interest costs on bonds. B) the demands inserted upon their firm by shareholder who suppose to be payment quarterly dividends. C) the risks connected with having actually to make solved interest payment on bonds at predetermined times. D) the impact that the choice will have actually on their company"s leverage. E) every one of the over are considerations.
The recognition of liabilities regularly results in: A) the recognition of expenses. B) a much more conservative depiction of gaue won position. C) a to decrease in network income. D) a to decrease in ROI. E) every one of the above.
Which of the adhering to is not commonly classified as a existing liability? A) account Payable. B) notes Payable. C) bonds Payable. D) Unearned Subscription Revenue. E) interest Payable.
In recommendation to the Discount on binding Payable and also Premium on bond Payable accounts, which statement is true? A) The Discount ~ above the bond Payable account is a contra asset. B) The Discount on the bond Payable account reduces working capital. C) The Discount ~ above the bonds Payable account is amortized by a credit entry every period. D) as the Premium on bond Payable account is amortized each period, the Interest price account is boosted to the amount that would have been, had the bond been offered at par. E) The premium on bonds Payable account is a contra liability.
When take out loan money, the most essential objective the the borrower have to be to: A) minimize monthly payments. B) minimize the APR. C) stop borrowing top top a discount basis. D) make the maturity date as far in the future together possible. E) reading all of the surprise terms and conditions.
Interest on a keep in mind payable is most as necessary accrued: A) once the note is signed. B) together of the finish of each accounting period during i m sorry the keep in mind is a liability. C) as soon as principal payments on the keep in mind are made. D) once the attention is paid. E) at the maturity date of the note.
Which of the following is (are) a true statement(s) pertaining come bonds? A) Bonds have the right to be marketed at a discount, par, or payable. B) Bonds have the right to be marketed at a discount, par, or premium. C) The SEC to adjust the industry price that a bond. D) The issuing firm sets the price the a bond. E) none of the above.
Financial leverage describes which of the following? A) The difference in between the price of return earned on heritage (ROI) and the price of return earned on stockholders" equity (ROE). B) The difference between the price of return earned on existing assets and the rate of return deserve on maintained earnings. C) The leverage a for sure obtains from enhancing production. D) to decrease fixed expenses per unit by enhancing production. E) nobody of the above.
The difference in between the rate of return earn on assets (ROI) and also the price of return deserve on stockholders" equity (ROE).
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Consolidated financial statements express to: A) financial statements reported on one industry-wide basis. B) The parent"s and subsidiary"s gaue won statements are reported ~ above a separate basis. C) The parent"s and also subsidiary"s jae won statements space reported ~ above a merged basis. D) The parent"s and subsidiary"s financial statements room reported skipping interest, depreciation, and taxes. E) nobody of the above.