You are watching: A company whose current liabilities exceed its current assets may have a liquidity problem.
T/F The relationship between current legal responsibility are existing assets is crucial in assessing a company"s capability to pay off its irreversible debt.
T/F with an interest-bearing note, the amount of cash got upon issuance the the note usually exceeds the note"s challenge value.
T/F metropolitan Symphony selling 200 season tickets for $50,000 that represents a five concert season. The quantity of Unearned Ticker Revenue after the 2nd concert is $20,000.
T/F throughout the month, a firm sells goods for a complete of $108,000, which contains sales count of $8,000; therefore the firm should recognize $100,000 in sales revenues and also $8,000 in Sales tax Expense.
T/F existing maturities of permanent debt describes the amount of interest on a keep in mind payable that must be paid in the current year.
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All of the adhering to are report as current liabilities EXCEPT:a. Accounts payableb. Bonds payablec. Notes payabled. Unearned revenues
The relationship in between current liabilities and current heritage isa. Valuable in identify incomeb. Beneficial in analyzing a company"s liquidityc. Called the matching principled. Useful in identify the amount fo a company"s irreversible debt
Most carriers pay present liabilitiesa. Out of existing assetsb. By issuing interest-bearing notes payablec. Through issuing stockd. By developing long-term liabilities
A existing liability is a debt that deserve to reasonably be expected to be paida. In ~ one year or the operation cycle, whichever is longerb. Between 6 months and 18 monthsc. The end of right now recognized revenuesd. The end of cash currently on hand
Liabilities are classified ~ above the balance sheet together a present ora. Deferredb. Unearnedc. Long-termd. Accrued
From a liquidity standpoint, that is much more desirable for a company to have actually currenta. Heritage equal current liabilitiesb. Legal responsibility exceed current assetsc. Assets exceed present liabilitiesd. Liabilities exceed irreversible liabilities
The partnership of existing assets to current liabilities is used in assessing a company"sa. Operation cycleb. Revenue-producing abilityc. Momentary debt paying abilityd. Long-range solvency
Which of the adhering to is normally NOT one accrued liability?a. Interest payableb. Earnings payablec. Counting payabled. Notes payable
In most companies, existing liabilities room paid within,a. One year v the creation of other existing liabilities.b. The operating cycles through the development of other existing liabilities.c. One year or the operation cycle the end of existing assets.d. The operation cycle the end of existing assets.
The entry to record the issuance of one interest-bearing note credits note Payable because that the note"sa. Maturity valueb. Sector valuec. Challenge valued. Cash realizable value
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