Quiz 3 Financial Accounting II

1. Which of the following would be considered an estimated liability?

 

Current liabilities are expected to be settled within

 

A company receives a note payable for $3,500 at 9% for 45 days. How much interest (to the nearest cent) will the customer owe using a 360-day year?

 

Utilize the _____________ principle to estimate warranty liabilities.

 

Which of the following would NOT be considered a contingent liability?

 

A 3 month, 7% note for $14,000 is signed on November 1. What is the entry to accrue interest on December 31?

 

If cash sales are made of $100,000, and a state-imposed sales tax of 5% is collected, which of the following will occur in the journal entry to record the sale?

 

Which of the following will be reported in the balance sheet as a current liability?

 

How should contingent liabilities be treated if the outcome is probable and the amount can be reasonably estimated?

 

If sales of $15,000 are made for the month, and estimated warranty costs are 3%, how do we recognize the warranty expense for the month?