Chapters 8-10

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What type of receivables result from sales transactions?
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Terms in this set (20)
Which of the following is true?Totals of major classes of assets can be shown in the balance sheet, with assets details disclosed in the notes to the financial statementsA corporations issued a $57100, 8%, 4-month note on July 1. The corporation's year-end is September 30. Which one of the following is the adjusting entry for interest on September 30?Dr- Interest Expense 1142 Cr- Interest Payable 1142 (57100 x 8% x 3/12)When recording payrollpayroll deductions are recorded as liabilitiesSales taxes recorded at the time the sale takes place area liabilityWhich statements describes the market interest rate?it is the rate investors demand for loaning fundsThe market price of a bond is equal to thepresent value of its principle amount plus the present value of all future interest paymentsThe market price (present value) of a bond is a function of all of the following except thelength of time until the bond is soldDiscount on Bonds Payableis a contra accountWhen a company retires bonds before maturity, the gain or loss on redemption is the difference between the cash paid and thecarrying value of the bondsA receivable that is evidenced by a formal instrument and that normally requires the payment of interest isa note receivable