Mdtm BSC401 F12DL Multiple Choice. Circle the one best answer. 1. All of the following are reported as current liabilities except a. accounts payable. b. bonds payable. c. notes payable. d. unearned...

Mdtm BSC401 F12DL Name:________________________Duration: 60 minutes Date: _________________________Point Distribution: 20/10/21/21/21/7 Part A: Multiple Choice. Circle the one best answer. 1. All of the following are reported as current liabilities except a. accounts payable. b. bonds payable. c. notes payable. d. unearned revenues. 2. The basis of estimating expected uncollectible accounts that emphasizes the matching of expenses with revenues is the a. percentage of receivables basis. b. percentage of sales basis. c. lower of cost or market basis. d. direct write-off method. 3. Which of the following is usually not an accrued liability? a. Interest payable b. Wages payable c. Taxes payable d. Notes payable 4. Interest expense on an interest-bearing note is a. always equal to zero. b. accrued over the life of the note. c. only recorded at the time the note is issued. d. only recorded at maturity when the note is paid. 5. The entry to record the issuance of an interest-bearing note credits Notes Payable for the note's a. maturity value. b. market value. c. face value. d. cash realizable value. 6. A corporation issued $900,000 of 6%, 5-year bonds on January 1, at 102. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization, the amount of bond interest expense to be recognized on July 1 is a. $54,000. b. $27,000. c. $28,800. d. $25,200. 7. A $600,000, 5%, 20-year bond was issued at 99. The proceeds received from the bond issuance are a. $600,000. b. $594,000. c. $612,000. d. $588,000. 8. A company purchased land for $90,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at a. $97,000. b. $90,000. c. $95,000. d. $102,000. 9. Equipment was purchased for $72,000 and has a book value of $24,000 and a...