Answer the following statements true (T) or false (F)
1. A known liability is always classified as a current liability.
2. For a liability to exist, the amount owed must be known.
3. Taxes payable would be an example of an estimated liability.
4. Metropolitan Ballet Co. sold season tickets for the upcoming season. Because this depends on a future event, it would be considered a contingent liability.
5. A transaction, such as a telephone bill to be paid in 30 days, would be journalized with a debit to Telephone Expense and a credit to Notes Payable.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
5. FALSE
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An internal or external event must be_____________to be recognized
Fill in the blank(s) with correct word
List the various types of sales promotions. What are the objectives of each type?
What will be an ideal response?
Contract devices explicitly designed to thwart a hostile takeover attempt are called poison pills or shark repellents. Examples include all of the following EXCEPT:
a. a shareholder rights plan that can be issued as dividends at management's discretion. b. an event-triggered put provision in one of the firm's debt contracts. c. a provision in the firm's charter that gives incumbent management their positions for life.
?Over?estimation of the required level of assets will 1. cause the firm to acquire excess finance 2. reduce the firm's profitability 3. increase the firm's equity
A. ?1 and 2 B. ?1 and 3 C. ?2 and 3 D. ?1, 2, and 3