intermediate-acct-test-bank-ch13

CHAPTER13CURRENTLIABILITIESANDCONTINGENCIESIFRSquestionsareavailableattheendofthischapter.TRUE-FALSE—ConceptualAnswerNo.DescriptionF1.Zero-interest-bearingnotepayable.F2.Dividendsinarrears.T3.Examplesofunearnedrevenues.T4.ReportingdiscountonNotesPayable.F5.Currentlymaturinglong-termdebt.F6.Excludingshort-termdebtrefinanced.T7.Accountingforsalestaxcollected.F8.Accountingforsickpay.T9.Socialsecuritytaxesasliabilities.F10.Definitionofaccumulationrights.T11.Recognizingcompensatedabsencesexpense.F12.Accruingestimatedlosscontingency.T13.Disclosinggaincontingencies.F14.Sales-typewarrantyprofit.T15.Fairvalueofassetretirementobligation.T16.Reportingalitigationliability.F17.Expensewarrantyapproach.F18.Acid-testratiocomponents.F19.Affectoncurrentratio.T20.Reportingcurrentliabilities.MULTIPLECHOICE—ConceptualAnswerNo.Descriptiond21.Definitionofaliability.d22.Natureofcurrentliabilities.a23.Recordingofaccountspayable.a24.Classificationofnotespayable.b25.Classificationofdiscountsonnotespayable.d26.Identifycurrentliability.c27.Bondsreportedascurrentliability.d28.Identifyitemwhichisnotacurrentliability.c29.Dividendsreportedascurrentliability.d30.Classificationofstockdividendsdistributable.c31.Identifyitemwhichisnotacurrentliability.d32.Identifycurrentliability.c33.Characteristicofcurrentliability.d34.Definitionofaliability.b35.Importanceofliabilitysectionofbalancesheet.a36.Currentliabilitiesandoperatingcycle.TestBankforIntermediateAccounting,FourteenthEdition13-2MULTIPLECHOICE—Conceptual(cont.)AnswerNo.Descriptiona37.Presentvalueandconceptofaliability.c38.Zero-interest-bearingnotespayable.d39.Callabledebtreporting.d40.Conditiontoexcludeshort-termobligation.a41.Abilitytoconsummaterefinancingofshort-termdebt.b42.Disclosureofpreferreddividendsnotdeclared.c43.Exampleofunearnedrevenue.d44.Short-termobligationsexpectedtoberefinanced.d45.Abilitytoconsummaterefinancingofshort-termobligations.d46.Determinewhatisaliability.a47.Classificationofsalestaxes.dS48.Disclosureforshort-termdebtrefinanced.bS49.Vestedrightsvs.accumulatedrights.dP50.Deductionsincomputingnetpay.d51.Employer'spayrolltaxexpense.d52.Accrualofaliabilityforcompensatedabsences.c53.Accrualofaliabilityforcompensatedabsences.d54.Accrualofaliabilityforcompensatedabsences.d55.Compensatedabsences.d56.Requirementsforcompensatedabsencesaccrual.b57.Conditionforsickpayaccrual.c58.Payrolltaxdeduction.d59.Definitionofacontingency.b60.Recordingcontingentliability.a61.Exampleofcontingentliability.d62.Recordingcontingentliability.d63.Disclosureofagaincontingency.d64.Disclosureofcontingencies.b65.Accrualoflosscontingency.a66.Litigationandlosscontingencies.c67.Accrualofacontingentliability.d68.Sourceofacontingentliability.b69.Assetretirementobligation.c70.Assetretirementobligation.c71.Classificationofwarrantyliability.c72.Liabilityaccrualduetogovernmentalaction.a73.Accrualofproductwarranties.bP74.Determininglossamounttoreport.dS75.Reportinglawsuitlossandliability.dS76.Accrualmethodforwarrantycosts.c77.Accrualwarrantymethod.d78.Cash-basiswarrantymethod.a79.Characteristicofexpensewarrantyapproach.b80.Accountingfordiscountcoupon.a81.Conditiontorecognizeassetretirementobligation.b82.Recordingliabilityforpendinglitigation.d83.Computationofacid-testratio.c84.Currentratioinformation.CurrentLiabilitiesandContingencies13-3MULTIPLECHOICE—Conceptual(cont.)AnswerNo.DescriptioncS85.Presentationofcurrentliabilities.aP86.Currentratioformula.d87.Disclosureofaccruedliabilities.d88.Acid-testratioelements.d89.Itemsincludedincurrentratioandacid-testratio.PThesequestionsalsoappearintheProblem-SolvingSurvivalGuide.SThesequestionsalsoappearintheStudyGuide.MULTIPLECHOICE—ComputationalAnswerNo.Descriptionb90.Adjustingentryinvolvingdiscountonshort-termnotepayable.d91.Calculateeffectiveinterestondiscountednote.a92.Calculatecostofinventorypurchase.d93.Calculateinterestexpense.b94.Calculateinterestexpense.c95.Reporting5-yearnoteinfinancialstatements.b96.Calculateunearnedrevenue.d97.Calculateamountofsalestaxpayable.b98.Determineamountofshort-termdebttobereported.d99.Determineamountofshort-termdebttobereported.b100.Calculatesalestaxesforthemonth.b101.Calculateamountofsalestaxespayable.c102.Determineamountofsalessubjecttosalestax.a103.Short-termdebttobeexcluded.a104.Short-termdebttobeexcluded.d105.Federal/stateunemploymenttaxes.d106.Federal/stateunemploymenttaxes.c107.Vacationliabilityaccrual.c108.Vacationliabilityaccrual.c109.Calculatepayrolltaxexpense.d110.Calculationofvacationexpensetoberecognized.a111.Calculationofaccruedliabilitytoberecognizedforcompensatedbalances.d112.Effectofpayrolltaxesonassets/liabilities.a113.Recordvacationliabilityaccrual.b114.Recordlosscontingencyamount.d115.Recordassetretirementobligation.d116.Calculateextendedwarrantycontractprofit.c117.Calculatewarrantyliability.b118.Calculaterebateexpenseandliability.d119.Assetretirementobligation.a120.Calculateinsuranceexpenseandloss.b121.Calculaterebateexpenseandliability.d122.Assetretirementobligation.d123.Calculatewarrantyliability.TestBankforInt