The information related to interest expense of classic music,inc. is given below:

NetIncome $265,000

Income taxexpense 105,000

Interestexpense 66,000

Based on the above data, which of the following is the times-interest- earned ratio? (round the final answer to two decimalplaces)

A)6.61 times

B)4.15 times

C)5.02 times

D)4.02 times

A contingency was evaluated at year- end and considered to havea reasonable possibility of becoming an actual liability. Reportedin the notes to the financial statements, what is the effect on thefinancial reporting of the company?

A)The net income of the company would be understated

B)The liabilities on the balance sheet would beunderstated

C)There would be no effect

D)The information about the transaction would be inadequatelydisclosed in the notes

Which of the following statements regarding accounts payable isincorrect?

A)Because accounts payable are typically due in 30 days, theyare current liabilities

B)Accounts payable represent debts owed to creditors

C)Accounts payable occur because the business receives the goodsor services before payment has been made.

D)The accounts payable account is decreased with acredit

Venus corp sold goods, with a selling price of $9,021, for cash.The state tax rate is 9%. What amount is credited to the salesrevenue account? (round calculations to the nearest dollar.)

A) $9,021

B)$812

C)$8,209

D)$9,833

Extra compensation items that are not paid directly to anemployee are called______..

A) benefits

B)wages

C)bonuses

D)commissions

Stones gross pay for the week is $1,100. Stones year- to- datepay is under the limit for OASDI. Assume that the rate for stateand federal unemployment compensation taxes is 6% and that Stone’syear- to date pay has not yet exceeded the $7,000 cap. What is theamount of state and federal unemployment tax that his employer mustrecord as payroll tax expense and pay to the federal and stategovernments ?

A)$155.27

B)$66.00

C)$147.95

D)$81.95

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Times interest earned ratio Income befo... View the full answer