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For many companies, current liabilities include:

accounts payable
accounts receivable
short-term notes payable
a and c only

Which of the following is an activity that would give rise to a short-term trade notes payable?

	purchasing merchandise inventory on account and then requesting a 90-day extension to make payment
	purchasing land from another party and signing a one year note payable as payment
	going to the bank and borrowing money, signed a 120-day note payable
Question 3

A company issues a $2,000, 7% note due in 120-days.How much interest will be due at maturity? (Use a a360-day year. Round answers to two decimal places.)

	$46.03
	$46.67
	none of the above
Question 5

See the previous question. On August 30, the due date of the note payable, what entry would our company make if they paid the note and interest in full?

	Notes Payable 100,000 Interest Expense 6,000 Cash 106,000
	Notes Payable 100,000 Interest Expense 1,000 Cash 101,000
	Notes Payable 101,000 Cash 101,000
Question 6

Which of the following are payroll taxes liabilities likely to be on an employers balance sheet?

	Federal income tax payable
	State unemployment tax payable
	each of these are examples of payroll liabilities
Question 7

Callable bonds may be ____.

	Retired early at the option of the issuing corporation
	Retired early at the option of the investor
	Converted into common stock
Question 10

If the market rate is lower than the contract rate, the bonds will sell at ____.

	A premium
	A discount
	Cannot be determined from the facts given
Question 11

A company issues $500,000 10% bonds due in 10 years for $480,000. Which of the following is true?

	The bonds were issued at a premium
	The bonds were issued at a discount
	Both b and c
Question 12

If a company issues $500,000, 6% bonds for $490,000, the entry to record the issuance of the bonds will include a ____.

	Debit to cash for $500,000
	Credit to bonds payable for $490,000
	Debit to discount on bonds payable for $10,000