Accounting WileyPlus Review 5 Verified Exam Questions and Answers
Latest update 2026/2027
Question:
To be classified as a current liability, how or when must a debt be expected to be paid?
Answer:
either out of existing current assets or by crediting other current liabilities
Question:
Which one of the following is NOT a typical current liability?
Answer:
bonds payable
Question:
Which of the following is NOT a typical current liability?
Answer:
prepaid rent
Question:
A corporation issued a $50,000, 9% 4month note on July 1st. The corporation's year-end is September
30. Which one of the following is the adjusting entry for interest on September 30?
Answer:
interest expense 1,125 interest payable 1,125
Question:
What is the equation for calculating interest for an adjusting entry?
Answer:
principal amount x annual interest rate x time note is outstanding
Question:
On September 1, 2014, Banner Company borrowed $70,000 from the City Bank for 5 months at 9%.
Interest was properly accrued on December 1. What entry is needed to record the payment of the note
and accrued interest on the due date?
Answer:
notes payable 70,000 interest payable 2,100 interest expense 525
, Question:
Buttner Company borrows $88,500 on September 1, 2014, from Harrington State Bank by signing an
$88,500, 12%, 1 year note. How much is accrued interest at December 31, 2014?
Answer:
cash 72,625 $3,540
Question:
RS Company borrowed $70,000 on December 1 on a 6-month, 12% note. Which statement is true at
December 31?
Answer:
both the note payable and the interest payable are current liabilities
Question:
When recording payroll...
Answer:
net pay is recorded as salaries and wages payable gross earnings are recorded as salaries and wages
expense
Question:
Sensible Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1.
What amount should Sensible report as a current liability for unearned insurance premiums at
December 31?
Answer:
payroll deductions are recorded as liabilities $4,500
Question:
Sales tax recorded at the time the sale takes place?
Answer:
a liability
Question:
The cash register tape indicates cash sales are $2,000 and sales taxes are $155. What journal entry is
needed to record this information?
Answer:
cash 2,155 sales 2,000 sales tax payable 155
Latest update 2026/2027
Question:
To be classified as a current liability, how or when must a debt be expected to be paid?
Answer:
either out of existing current assets or by crediting other current liabilities
Question:
Which one of the following is NOT a typical current liability?
Answer:
bonds payable
Question:
Which of the following is NOT a typical current liability?
Answer:
prepaid rent
Question:
A corporation issued a $50,000, 9% 4month note on July 1st. The corporation's year-end is September
30. Which one of the following is the adjusting entry for interest on September 30?
Answer:
interest expense 1,125 interest payable 1,125
Question:
What is the equation for calculating interest for an adjusting entry?
Answer:
principal amount x annual interest rate x time note is outstanding
Question:
On September 1, 2014, Banner Company borrowed $70,000 from the City Bank for 5 months at 9%.
Interest was properly accrued on December 1. What entry is needed to record the payment of the note
and accrued interest on the due date?
Answer:
notes payable 70,000 interest payable 2,100 interest expense 525
, Question:
Buttner Company borrows $88,500 on September 1, 2014, from Harrington State Bank by signing an
$88,500, 12%, 1 year note. How much is accrued interest at December 31, 2014?
Answer:
cash 72,625 $3,540
Question:
RS Company borrowed $70,000 on December 1 on a 6-month, 12% note. Which statement is true at
December 31?
Answer:
both the note payable and the interest payable are current liabilities
Question:
When recording payroll...
Answer:
net pay is recorded as salaries and wages payable gross earnings are recorded as salaries and wages
expense
Question:
Sensible Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1.
What amount should Sensible report as a current liability for unearned insurance premiums at
December 31?
Answer:
payroll deductions are recorded as liabilities $4,500
Question:
Sales tax recorded at the time the sale takes place?
Answer:
a liability
Question:
The cash register tape indicates cash sales are $2,000 and sales taxes are $155. What journal entry is
needed to record this information?
Answer:
cash 2,155 sales 2,000 sales tax payable 155
