100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Accounting Volume 2 Canadian 9th Edition Horngren - Test Bank $23.41   Add to cart
Quickly navigate to
Preview
  2.  
  3. Canadian Accounting Test Bank
  4.  
  5. Canadian Accounting Test Bank
  6.  
  7. Canadian Accounting Test Bank

Exam (elaborations)

Accounting Volume 2 Canadian 9th Edition Horngren - Test Bank
 7 views  0 purchase
  • Course
  • Canadian Accounting Test Bank
  • Institution
  • Canadian Accounting Test Bank

Accounting, Vol. 2, 9e Cdn. Ed. (Horngren) Chapter 11 Current Liabilities and Payroll Objective 11-1 1) Accrued interest on a note payable should be credited to interest payable. Answer: TRUE Diff: 1 Type: TF Learning Outcome: A-12 Define and record current and contingent liabiliti...

[Show more]

Preview 4 out of 608  pages

Document information

  • August 19, 2023
  • 608
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • test bank with answers
  • accounting volume 2 canadian 9th edition horngren

Written for

  • Canadian Accounting Test Bank
  • Canadian Accounting Test Bank
  • Canadian Accounting Test Bank
All documents for this subject (4)

Seller

avatar-seller
ExamsExpert

Reviews received

Content preview

,Accounting, Vol. 2, 9e Cdn. Ed. (Horngren)
Chapter 11 Current Liabilities and Payroll

Objective 11-1

1) Accrued interest on a note payable should be credited to interest payable.
Answer: TRUE
Diff: 1 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

2) Interest payable is a contra liability account and is deducted from the note payable on the balance
sheet.
Answer: FALSE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

3) A $45,000, 10%, 90-day note payable comes to maturity. The amount to be paid at maturity including
interest is $43,890.41.
Answer: FALSE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Application
Objective: 11-1 Account for current liabilities of known amount

4) An unearned revenue arises when a company receives cash from its customers in advance of earning
the revenue.
Answer: TRUE
Diff: 1 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

5) Current portion of long-term debt refers to the amount of principle on a note payable that must be paid
within a year.
Answer: TRUE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount




1
© 2014 Pearson Canada Inc.

,6) The entry to record unearned revenue received in advance includes a debit to unearned revenue and a
credit to cash.
Answer: FALSE
Diff: 1 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

7) Sales tax payable is recorded as a debit when recording a sale of merchandise.
Answer: FALSE
Diff: 1 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

8) The failure to record an accrued liability causes a company to overstate its net income.
Answer: TRUE
Diff: 3 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Comprehension
Objective: 11-1 Account for current liabilities of known amount

9) The only way to reduce a current liability is to pay out cash.
Answer: FALSE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Comprehension
Objective: 11-1 Account for current liabilities of known amount

10) Operating lines of credit are popular because they do not carry any interest charges.
Answer: FALSE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

11) Interest must be accrued on all current notes payable. For long-term notes the interest is accrued at the
maturity of the note.
Answer: FALSE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

12) Notes payable normally require the borrower to pay interest.
Answer: TRUE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount




2
© 2014 Pearson Canada Inc.

, 13) A $15,000, 8%, 9-month note payable requires an interest payment of $900 at maturity, if no interest
was previously paid.
Answer: TRUE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Application
Objective: 11-1 Account for current liabilities of known amount

14) The rate of provincial sales taxes is the same in every province.
Answer: FALSE
Diff: 1 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

15) The Federal Government collects all the PST and GST for the country and then passes on the
collection of the PST to the individual provincial governments.
Answer: FALSE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

16) Most lines of credit are payable on demand.
Answer: TRUE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

17) The province of Alberta has the lowest PST rate in Canada of 3%.
Answer: FALSE
Diff: 2 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

18) The methods of recording GST and HST are similar.
Answer: TRUE
Diff: 1 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount

19) In some provinces individual consumers must pay both HST and PST.
Answer: FALSE
Diff: 1 Type: TF
Learning Outcome: A-12 Define and record current and contingent liabilities
Skill: Knowledge
Objective: 11-1 Account for current liabilities of known amount




3
© 2014 Pearson Canada Inc.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for $23.41. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

78252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

BCA Final Exam Questions & Answers 2023/2024

$23.41
  • (0)
  Buy now