Chapter 11 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Chapter 11 Accounting 26e Carl Warren James M Reeve Jonathan Duchac

Complete Chapter Questions With Answers

Sample Questions Are Posted Below

1. Receiving payment prior to delivering goods or services causes a current liability to be incurred.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.11-01 – 11-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.16 – Current Liabilities Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

2. All long-term liabilities eventually become current liabilities.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.11-01 – 11-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.16 – Current Liabilities Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

3. For a current liability to exist, the liability must be due usually within a year and must be paid out of current assets.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.11-01 – 11-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.16 – Current Liabilities Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

4. The borrower issues a note payable to a creditor.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Moderate

Bloom’s: Remembering

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.16 – Current Liabilities Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic

5. Notes payable may be issued to creditors to satisfy previously created accounts payable.
   1. True
   2. False

ANSWER:                                  True

DIFFICULTY:                           Easy

Bloom’s: Remembering

LEARNING OBJECTIVES:        ACCT.WARD.16.11-01 – 11-01

ACCREDITING STANDARDS:   ACCT.ACBSP.APC.16 – Current Liabilities Reporting

ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic