Which of the following statements related to estimated liabilities is false? Multiple Choice O о They are always reported in the notes to financial statements. They include vacation benefits and paid absences. They can be both current and long term. They are known obligations of an uncertain amount that can be reasonably estimated. The journal entry to record estimated liabilities includes a debit to an expense account and credit to a payable account.

Which of the following statements related to estimated liabilities is false? Multiple Choice O о They are always reported in the notes to financial statements. They include vacation benefits and paid absences. They can be both current and long term. They are known obligations of an uncertain amount that can be reasonably estimated. The journal entry to record estimated liabilities includes a debit to an expense account and credit to a payable account.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9MC: Which method delays recognition of bad debt until the specific customer accounts receivable is...

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Which one of the following best describes the allowance for doubtful accounts? a.Statement of earnings account b.Liability account c.Contra account d.Cash flow account
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Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. List A List B 1. Interest expense is recorded in the period interest is incurred rather than in the period interest is paid. 2. Payment is reasonably possible and is reasonably estimable. 3. Cash, current investments, and accounts receivable all divided by current liabilities. 4. Payment is probable and is reasonably estimable. 5. Gift cards. 6. Long-term debt maturing within one year. 7. Social Security and Medicare. 8. Unsecured notes sold in minimum denominations of $25,000 with maturities up to 270 days. 9. Classifying liabilities as either current or long-term helps investors and creditors assess this. 10. Incurred on notes payable. a. The riskiness of a business’s obligations. b. Current portion of long-term debt. c. Recording a contingent liability. d. Disclosure of a contingent…
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Indicate whether each statement best describes the allowance (A) method or the direct write-off (DW)method. Does not predict bad debts expense.
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