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Accounting 26th Edition By Warren – Test Bank
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Accounting 26th Edition By Carl Warren James – Test Bank

$40.00 Original price was: $40.00.$20.00Current price is: $20.00.

This is not a Textbook. Please check the free sample before buying.

Edition: 26th Edition

Format: Downloadable ZIP Fille

Resource Type: Test bank

Duration: Unlimited downloads

Delivery: Instant Download

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SKU: 573372 Category: Accounting
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Accounting 26th Edition By Carl Warren James – Test Bank

1. Receiving payment prior to delivering goods or services causes a current liability to be incurred.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
2. All long-term liabilities eventually become current liabilities.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
3. For a current liability to exist, the liability must be due usually within a year and must be paid out of current assets.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
4. The borrower issues a note payable to a creditor.
a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

5. Notes payable may be issued to creditors to satisfy previously created accounts payable.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
6. Interest expense is reported in the operating expense section of the income statement.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
7. An interest-beating note is a loan in which the lender deducts interest from the amount loaned before the money is advanced to the borrower.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

8. The amount borrowed is equal to the face amount of the note on an interest bearing note payable.
a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
9. The amount of money a borrower receives from the lender is called the discount rate.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
10. The proceeds of a discounted note are equal to the face value of the note.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic
11. The discount on a note payable is charged to an account that has a normal credit balance.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

12. The proceeds from discounting a $20,000, 60-day, note payable at 6% is $20,200.
a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
LEARNING OBJECTIVES: ACCT.WARD.16.11-01 – 11-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.16 – Current Liabilities Reporting
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

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