ACC 101 Test questions with
answers well defined 100%
Current Liability - ANS✅✅obligations due within one year or the company's operating cycle,
whichever is longer
Accounts Payable - ANS✅✅amounts owed to suppliers for products/services purchased on credit
Unearned Revenues - ANS✅✅amounts received in advance from customers for future products or
services
Classification of Unearned Revenues - ANS✅✅Debit: Cash $6,300
Credit: Sales: $6,000
Credit: Sales tax payable $300
Contingent Liability - ANS✅✅A potential obligation that depends on a future event arising from a
past transaction or event
Short term notes payable - ANS✅✅A written promise to pay a specified amount on a definite
future date within one year or the company's operating cycle, whichever is longer.
What is the difference between the amount received issuing a notes payable and the amount
repaid? - ANS✅✅Interest paid
Organization costs - ANS✅✅The costs to organize a corporation (examples: legal fees, promoters
fees, amounts paid to obtain a charter)
Authorized stock - ANS✅✅the amount of stock that a corporation is authorized to sell as indicated
in its charter
Outstanding shares - ANS✅✅the total number of shares of stock that are owned by stockholders
on any particular date
answers well defined 100%
Current Liability - ANS✅✅obligations due within one year or the company's operating cycle,
whichever is longer
Accounts Payable - ANS✅✅amounts owed to suppliers for products/services purchased on credit
Unearned Revenues - ANS✅✅amounts received in advance from customers for future products or
services
Classification of Unearned Revenues - ANS✅✅Debit: Cash $6,300
Credit: Sales: $6,000
Credit: Sales tax payable $300
Contingent Liability - ANS✅✅A potential obligation that depends on a future event arising from a
past transaction or event
Short term notes payable - ANS✅✅A written promise to pay a specified amount on a definite
future date within one year or the company's operating cycle, whichever is longer.
What is the difference between the amount received issuing a notes payable and the amount
repaid? - ANS✅✅Interest paid
Organization costs - ANS✅✅The costs to organize a corporation (examples: legal fees, promoters
fees, amounts paid to obtain a charter)
Authorized stock - ANS✅✅the amount of stock that a corporation is authorized to sell as indicated
in its charter
Outstanding shares - ANS✅✅the total number of shares of stock that are owned by stockholders
on any particular date
