definition and recognition criteria of liabilities

Any unamortized premium should be reported on the balance sheet of the issuing corporation as   a. paid-in capital   b. a direct deduction from the face amount of the bonds in the Liabilities section   c. an addition to the face amount of the bonds in the Liabilities section   d. a direct deduction from retained earnings

Which of the following is not generally correct about recording a sale of a debt security before its maturity date? O An entry must be made to amortize a discount to the date of sale. O The entry to amortize a premium to the date of sale includes a credit to the Premium on Debt Investments account. O A gain or loss on the sale is reported as other revenue or expense. O Accrued interest will be received by the seller even though it is not an interest payment date.

Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be used more than once.   Question 11 options:   Current assets/Current liabilities   Probable likelihood and estimable liability   Measures the “instant” debt-paying ability of a company   Current assets – Current liabilities   (Cash + Temporary investments + Accounts receivable)/Current liabilities   Cash + Temporary investments + Accounts receivable   Probable likelihood of a liability but cannot be estimated     Remote contingent liability   Reasonably possible likelihood of a liability   1. Current ratio 2. Working capital 3. Quick assets 4. Quick ratio 5. Record an accrual and disclose in the notes to the financial statements 6. Disclose only in notes to financial statements 7. No disclosure needed in notes to financial statements