ACCOUNTING COACH BOOKKEEPING EXAM QUESTIONS AND ANSWERS

ACCOUNTING COACH BOOKKEEPING EXAM QUESTIONS AND ANSWERS What is the current portion of long-term debt? - ANSWER-Reports the principle portion of a long-term debt that will have to be paid within one year of the date of the balance sheet and will be recorded as current liability. What is Accounts Payable? - ANSWER-Liability account that contains the amounts owed to suppliers for invoices that have been approved and entered for payment or employee wages and benefits earned but not yet recorded. What is Unearned or Deferred Revenues? - ANSWER-Payments that have been received in advance of having been earned. What is installment loans payable? - ANSWER-Loans that require a series of payments. E.g. A three year automobile loan that requires monthly payments. The principal that is due within one year of the balance sheet date will be reported as a current liability and the remainder of the principal owed will be reported as noncurrent liability. What is mortgage loans payable? - ANSWER-Mortgage loans are long-term loans with real estate pledged as collateral. The principal that is due within one year of the balance sheet date will be reported as a current liability and the remainder of the principal owed will be reported as noncurrent liability. What is Paid-in Capital? - ANSWER-Indicates the amount paid to the corporation at the time shares of stock were issued.