111.Sales taxes collected by a retailer are reported as
a.contingent liabilities.
b.revenues.
c.expenses.
d.current liabilities.
112.Julie's Boutique has total receipts for the month of $39,060 including sales taxes. If the sales tax rate is 5%, what are Julie's sales for the month?
a.$37,108
b.$37,200
c.$39,060
d.It cannot be determined.
113.A cash register tape shows cash sales of €3,500 and sales taxes of €210. The journal entry to record this information is
a.Cash...............................................3,500
Sales Revenue...........................................3,500
b.Cash...............................................3,710
Sales Tax Revenue...........................................210
Sales Revenue...........................................3,500
c.Cash...............................................3,500
Sales Tax Expense...........................................210
Sales Revenue...........................................3,710
d.Cash...............................................3,710
Sales Revenue...........................................3,500
Sales Taxes Payable..........................................210
114.Oakley Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $71,500. If the sales tax rate is 4%, what amount must be remitted to the taxing authority for February's sales taxes?
a.$2,860
b.$2,750
c.$4,290
d.It cannot be determined.
115.Any balance in an unearned revenue account is reported as a(n)
a.current liability.
b.long-term debt.
c.revenue.
d.unearned liability.
116.Pickett Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 60,000 subscriptions in January at $18 each. What entry is made in January to record the sale of the subscriptions?
a.Accounts Receivable...................................1,080,000
Subscription Revenue........................................1,080,000
b.Cash...........................................1,080,000
Unearned Subscription Revenue................................1,080,000
c.Accounts Receivable...................................180,000
Unearned Subscription Revenue................................180,000
d.Prepaid Subscriptions..................................1,080,000
Cash1,080,000
117.Hilton Company issued a four-year interest-bearing note payable for $500,000 on January 1, 2013. Each January the company is required to pay $125,000 on the note. How will this note be reported on the December 31, 2014 statement of financial position?
a.Long-term debt, $500,000.
b.Long-term debt, $375,000.
c.Long-term debt, $250,000; Long-term debt due within one year, $125,000.
d.Long-term debt, $375,000; Long-term debt due within one year, $125,000.
118.The current ratio is
a.current assets plus current liabilities.
b.current assets minus current liabilities.
c.current assets divided by current liabilities.
d.current assets multiplied by current liabilities.
119.Hardy Company has current assets of $120,000, current liabilities of $100,000, non-current assets of $180,000 and non-current liabilities of $90,000. Hardy Company's working capital and its current ratio are
120.Each of the following is correct regarding bonds
except
they are
a.a form of interest-bearing notes payable.
b.attractive to many investors.
c.issued by corporations and governmental agencies.
d.sold in large denominations.