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 best describes the proper presentation of accounts receivable in the financial statements?a. Accounts Receivable plus the Allowance for DoubtfulAccounts in the asset section of the balance sheet.b. Accounts Receivable in the asset section of the balancesheet and the Allowance for Doubtful Accounts in theexpense section of the income statement.c. Accounts Receivable less Bad Debt Expense in theasset section of the balance sheet.d. Accounts Receivable less the Allowance for DoubtfulAccounts in the asset section of the balance sheet.

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…

Which of the following statements does not correctly describe the allowance for doubtful accounts balance? Multiple Choice О It is reported on the balance sheet as a component of current assets. It is a contra-asset account. It is reported on the balance sheet as a component of stockholders' equity. It is created as a result of the adjusting entry to record bad debt expense.

When using the allowance method, the entry to record estimated uncollectible accounts includes a: a) Debit to Accounts Receivable b) Credit to Bad Debt Expense c) Debit to Allowance for Doubtful Accounts d) Credit to Allowance for Doubtful Accounts

Which following statement is a correct statement about the direct write-off method for calculating credit loss expense? A. It is in accordance with GAAP. B. It uses an allowance for credit losses account. C. It tends to understate accounts receivable on the balance sheet. D. It recognizes credit loss expense when a specific account is determined to be uncollectible.

Which of the following concepts relates to using the allowance method in accounting for accounts receivable? Bad debt expense is management's determination of which accounts will be sent to the attorney for collection. а. O b. Bad debt expense is an estimate that is based on historical and prospective information. Ос. Bad debt expense is an estimate that is based only on an analysis of the receivables ageing. O d. Bad debt expense is based on the actual amounts determined to be uncollectible.

Which of the following statements is false?   a) An entry to write off an uncollectible account does not change the net realizable value of accounts receivable.   b)The issuer ofa note records a receivable on their books on the date the note is issued.   c)Using the allowance method of accounting for accounts receivables follows the matching concept.   d)Recording an accrued asset for interest increases stockholders' equity.

Indicate whether each statement best describes the allowance (A) method or the direct write-off (DW)method. Does not predict bad debts expense.

Which of the following statements is false? Group of answer choices A)The journal entry to record bad debt expense decreases current assets. b)The journal entry to record bad debt expense decreases retained earnings. C)The journal entry to write-off an uncollectible account receivable decreases operating income. D)The journal entry to write-off an uncollectible account receivable does not affect current assets. e)All the above statements are correct.