ACCT 2300; Exam 3 questions with
complete solutions 2025/2026 already
passed
Income taxes payable is an example of a current _______ that must be ________. - ANS
✔✔liability, accrued
The landlord records the security deposit she collects from the tenant as a(n)... - ANS
✔✔liability
In 2013, Mintoer Co. sold 100 hot air balloons at $4,000 each. The balloons carry a 5-year
warranty for defects. Minter estimates that repair costs will average 4% of the goal selling price.
The estimated warranty liability at the beginning of the year was $42,000. $11,000 in claims was
actually incurred during the year to honor their warranty. What was the balance in the ending
estimated warranty liability at the end of the year? - ANS ✔✔$47,000
If a company purchases $3,200 worth of inventory with terms 2/10, n/30 on March 3 and pays
April 2, then the amount paid to the seller would be - ANS ✔✔$3,200
Depreciation is - ANS ✔✔an effort to achieve proper matching of the cost of operating assets
If you must calculate the present value of an amount at 8% compounded quarterly for 2 years,
then the interest factor used in the calculations is - ANS ✔✔2% for eight periods
The entry required to recognize the bad debts expense for 2014 will act to - ANS ✔✔decrease
total assets and retained earnings
complete solutions 2025/2026 already
passed
Income taxes payable is an example of a current _______ that must be ________. - ANS
✔✔liability, accrued
The landlord records the security deposit she collects from the tenant as a(n)... - ANS
✔✔liability
In 2013, Mintoer Co. sold 100 hot air balloons at $4,000 each. The balloons carry a 5-year
warranty for defects. Minter estimates that repair costs will average 4% of the goal selling price.
The estimated warranty liability at the beginning of the year was $42,000. $11,000 in claims was
actually incurred during the year to honor their warranty. What was the balance in the ending
estimated warranty liability at the end of the year? - ANS ✔✔$47,000
If a company purchases $3,200 worth of inventory with terms 2/10, n/30 on March 3 and pays
April 2, then the amount paid to the seller would be - ANS ✔✔$3,200
Depreciation is - ANS ✔✔an effort to achieve proper matching of the cost of operating assets
If you must calculate the present value of an amount at 8% compounded quarterly for 2 years,
then the interest factor used in the calculations is - ANS ✔✔2% for eight periods
The entry required to recognize the bad debts expense for 2014 will act to - ANS ✔✔decrease
total assets and retained earnings
