1
ACCT 2300 Exam 4 TTU Questions with Correct
Answers | Updated (100% Correct Answers)
A disclosure of a contingent liability in the footnotes means the obligation is...
Answer: Possible
Difference between Accounts Payable and Notes Payable Answer: Notes Payable
charges interest.
Lawsuit with no dollar amounts assigned to the case. Answer: Contingent
Liability
Sales Tax Answer: Given to the State!
Warranty Payable Answer: represents the liability account set up when warranty
expense is recognized and is used to account for warranty work performed in the
future
What kind of liability is a warranty payable? Answer: Estimated Liability
Patents Answer: 20 Years
According to GAAP, Goodwill is recorded as... Answer: A loss only when the
goodwill is losing value.
Equipment, Buildings, and Vehicles = Answer: Depreciated
Why are contingent liabilities considered unique and different from all other
liabilities? Answer: Because it depends on if the company has obligation on the
result of a future event.
© 2026 All rights reserved
, 2
What is an intangible asset only received when acquiring a company? Answer:
Goodwill
When as asset is fully depreciated, how doe it remain on the balance sheet?
Answer: As a " Cost - Accumulated Depreciation "
When paying off a warranty, what are you using? Answer: You are using the
estimated warranty expense account and taking from it.
Accumulated Depreciation Answer: A "contra asset" account representing the
total depreciation taken to date. (Natural Credit Balance)
Contingent Liabilities Answer: Either Current or Long-Term
Patents, Copyrights, and Trademarks = Answer: Amoritzed
Research and Development = Answer: Expensed and becomes a part of the
Income Statement
What is a purchased phone with warranty considered? Answer: Estimated
Liability
Intagible Answer: Assets that CANNOT be touched.
When iron is being extracted... Answer: there will be a debit to iron inventory
because it is being added to it.
Fixing a company machine = Answer: A repairs and maintenance expense
What do you do when an obligation is Remote? Answer: No action is necessary
in the accounting treatment.
© 2026 All rights reserved
ACCT 2300 Exam 4 TTU Questions with Correct
Answers | Updated (100% Correct Answers)
A disclosure of a contingent liability in the footnotes means the obligation is...
Answer: Possible
Difference between Accounts Payable and Notes Payable Answer: Notes Payable
charges interest.
Lawsuit with no dollar amounts assigned to the case. Answer: Contingent
Liability
Sales Tax Answer: Given to the State!
Warranty Payable Answer: represents the liability account set up when warranty
expense is recognized and is used to account for warranty work performed in the
future
What kind of liability is a warranty payable? Answer: Estimated Liability
Patents Answer: 20 Years
According to GAAP, Goodwill is recorded as... Answer: A loss only when the
goodwill is losing value.
Equipment, Buildings, and Vehicles = Answer: Depreciated
Why are contingent liabilities considered unique and different from all other
liabilities? Answer: Because it depends on if the company has obligation on the
result of a future event.
© 2026 All rights reserved
, 2
What is an intangible asset only received when acquiring a company? Answer:
Goodwill
When as asset is fully depreciated, how doe it remain on the balance sheet?
Answer: As a " Cost - Accumulated Depreciation "
When paying off a warranty, what are you using? Answer: You are using the
estimated warranty expense account and taking from it.
Accumulated Depreciation Answer: A "contra asset" account representing the
total depreciation taken to date. (Natural Credit Balance)
Contingent Liabilities Answer: Either Current or Long-Term
Patents, Copyrights, and Trademarks = Answer: Amoritzed
Research and Development = Answer: Expensed and becomes a part of the
Income Statement
What is a purchased phone with warranty considered? Answer: Estimated
Liability
Intagible Answer: Assets that CANNOT be touched.
When iron is being extracted... Answer: there will be a debit to iron inventory
because it is being added to it.
Fixing a company machine = Answer: A repairs and maintenance expense
What do you do when an obligation is Remote? Answer: No action is necessary
in the accounting treatment.
© 2026 All rights reserved
