16. Which of the following is not a current liability? A. Accounts payable. B. A note...

 

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16. Which of the following is not a current liability? A. Accounts payable. B. A note payable due in 2 years. C. Current portion of long-term debt D. Sales tax payable. 17. The sale of gift cards by a company is a direct example of: A. Unearned revenues. B. Sales tax payable. C. Current portion of long-term debt. D. Deferred taxes. 18. On November 1, 2015, Daylight Donuts signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. Daylight Donuts should report interest payable at December 31, 2015, in the amount of: A. $0. B. $1,500. C. $3,000. D. $2,250. 19. On November 1, 2015, Daylight Donuts signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2015. In recording the payment of the note plus accrued interest at maturity on March 1, 2016, Daylight Donuts would A. Debit Interest Expense, $3,000. B. Debit Interest Expense, $1,500. C. Debit Interest Payable, $4,500. D. Debit Interest Expense, $4,500. 20. Working capital is A. Current assets divided by current liabilities. B. Current assets minus current liabilities. C. Cash, short-term investments, and accounts receivable divided by current liabilities. D. Cash, short-term investments, and accounts receivable minus current liabilities. 21. The current ratio is A. Current assets divided by current liabilities. B. Cash and short-term investments divided by current liabilities. C. Cash, short-term investments, and accounts receivable divided by current liabilities. D. Cash, short-term investments, accounts receivable, and inventory divided by current liabilities. 16. Which of the following is not a current liability? A. Accounts payable. B. A note payable due in 2 years. C. Current portion of long-term debt D. Sales tax payable. 17. The sale of gift cards by a company is a direct example of: A. Unearned revenues. B. Sales tax payable. C. Current portion of long-term debt. D. Deferred taxes. 18. On November 1, 2015, Daylight Donuts signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. Daylight Donuts should report interest payable at December 31, 2015, in the amount of: A. $0. B. $1,500. C. $3,000. D. $2,250. 19. On November 1, 2015, Daylight Donuts signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2016. Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2015. In recording the payment of the note plus accrued interest at maturity on March 1, 2016, Daylight Donuts would A. Debit Interest Expense, $3,000. B. Debit Interest Expense, $1,500. C. Debit Interest Payable, $4,500. D. Debit Interest Expense, $4,500. 20. Working capital is A. Current assets divided by current liabilities. B. Current assets minus current liabilities. C. Cash, short-term investments, and accounts receivable divided by current liabilities. D. Cash, short-term investments, and accounts receivable minus current liabilities. 21. The current ratio is A. Current assets divided by current liabilities. B. Cash and short-term investments divided by current liabilities. C. Cash, short-term investments, and accounts receivable divided by current liabilities. D. Cash, short-term investments, accounts receivable, and inventory divided by current liabilities.

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Q16 Which of the following is not a current liability Ans B A note payable due in 2 years Explanatio... View the full answer