- All the following are reported as current liabilities except:

1. Notes payable due in 3 years

2. Deferred revenues

3. Notes payable due in 8 months

4. Accounts payable

- In each succeeding payment on installment note:

1. The amount of interest expense is unchanged

2. The amount of interest expense increases

3. The amount of interest expense decreases

4. The amounts paid for both interest and principal increase proportionately

- Which of the following is considered to be a Land Improvement asset?

1. A sprinkler system

2. A warehouse

3. A printing press

4. A dump truck

- The sale of gift cards by a company is direct example of:

1. Deferred revenues

2. Installment notes

3. Current portion of long-term debt

4. Sales tax payable

- Flamingo Company borrows $30,000 using a five-year, long-term installment note payable. The rate on the note is percent and Flamingo agrees to make monthly payments of $566.14. Which of the following statements is correct about Flamingos first payment?

1. Note payable reduction is $125.00 and interest is $441.14

2. Note payable reduction is $441.14 and interest is $125.00

3. Note payable reduction is $123.16 and interest is $442.98

4. Note payable reduction is $442.98 and interest is $123.16

- Young Company is involved in a lawsuit. The liability that could arise as a result of this lawsuit should be recorded on the books of Young if:

1. The likelihood of losing the lawsuit is reasonably possible and the amount is reasonably estimable.

2. The likelihood of losing the lawsuit is probable and the amount is not reasonably estimable.

3. The likelihood of losing the lawsuit is remote and the amount is reasonably estimable.

4. The likelihood of losing the lawsuit is probable and the amount is reasonably estimable.