Hi again,
I was wondering if anyone might know how to check my answers to these questions on accounting...thanks!!
1. The current portion of long-term debt should
a. not be separated from the long-term portion of debt.
b. be paid immediately.
c. be reclassified as a current liability.
>>>>>d. be classified as a long-term liability.
2. Failure to record a liability will probably
a. result in understated total assets.
>>>>>b. have no effect on net income.
c. result in overstated total liabilities and owner's equity.
d. result in an overstated net income.
3. Spencer Corporation borrowed $300,000 from National Bank on May 31, 2006. The three-year, 7% note required annual payments of $114,315 beginning May 31, 2007.
Reference: Ref 10-14
The total amount of interest to be paid over the life of the loan is
a. $63,000.
b. $83,801.
c. $42,945.
>>>>>d. $21,000.
5. If bonds have been issued at a discount, then over the life of the bonds the
a. interest expense will increase, if the discount is being amortized on a straight-line basis.
b. unamortized discount will increase.
c. carrying value of the bonds will increase.
>>>>>d. carrying value of the bonds will decrease.
5 answers