24, which is a criticism not generally used broth prepared, current standard ISA reports. Loss account in Gand according to the current value for the use of different information.b.the wide classifications.c.an extensive use of estimates.d.failure contain the financial value, the lens can be recorded. d. None of these. 27. the stopped ISA course to give.Cash, receivables, prepaid, elements inventories.b.Cash, inventories, prepaid items.c.Cash, inventories, accounts receivable, inventories items.d.Cash prepaid, prepaid items, accounts receivable. 28. the basis for the classification of assets as current or long-term is the conversion in cash accounting cycle or withina.the, a year or operating cycle or shorter.b.the per year, or accounting longer.c.the ANC ' cycle is shorter longer.d.the a year or the Geschäftszyklusist. 29. the classification as current or the time Normallyrequired the accounting entity is not active convert INA invested the money. Cash was, or 12 months, regardless of the shorter.b.receivables of money, or 12 months, what whatever the longer.c.tangible capital news longer.d.inventory 12 months, 12 months or cash, which actively on short term, the balance sheet is longer. 30 must Includea is. Machines b. patents c. goodwill d. inventory. 31. which of the following options is a good thing? a. cash hand over the cash value of a life insurance policy, that the company good ficiary.b.Investment in equity securities, managed programs to control to the company.c.Cash, the acquisition of fixed assets assets.d.Trade loans normally trading in 18 months. 18 test bank 13-18 for advanced accounting c. installation gas assets XIV Edition $6,000,000 credit obligation and the flow of $ 6.000.000. d. installation of gas flow through the Elimination of assets by $8,000, 000.116 and $ 8.000.000. Warranty4U offers extended service contracts in electrical and electronic equipment sold by big retailers. The contract is for three years. In the current year Warranty4U had provided 42,000 these contracts guarantee at an average price of $81. Relating to these contracts, the company spent $400,000 additional contracts this year and $2,100,000 more spending in the future. What is the net use that the company recognizes these contracts in the year? one. b. $3.002.000 $902.000. c. $300.667. d. $734, 000.117. All home Electronics4U produces high-end electronic systems. The company offers a 1-year warranty for all products sold. The company estimates that the warranty sold $200 for units and costs reported, that a liability for warranty costs estimated $7.8 billion this year. If the company in the current year with 60,000 units for a total $243 million and warranty claims, the current and the previous year $9 million had paid sold, sales, many responsibility report the company in its balance sheet at the end of this year. ? 3 000 $000. b. $ 4.200.000. c. 10 800 $000. . d. $ 12,000, 000.118. A company that offers a cash refund of $1 for each $4 bulbs sold for the year 2012. Historically speaking, the 10% of the mail to customers as a rebate. While the packages sold in 2012 3.16 million and onions provided discounts to customers in 1. What is the cost of reimbursement and liability, and is dated in the financial statements of 31 December 2012? a $300,000; b. $ $300 000 300 000; $140 140 000 000 c.; d. $ $140 000 to 160 000; $140,000119. A company buys an oil rig for $2,000,000 on January 1, 2012. The life of the platform is $400,000 10 years and the estimated cost for the disassembly of the equipment at the end of 10 years (net present value is $154.220 at 10%). 10% is an interest rate that is appropriate for this company. What must cost for the year 2012, register as a consequence of these events? a depreciation cost depreciation costs b $240,000 spend $200,000 interest and $15.422 c. depreciation of $200 000 $40 000 d. depreciation interest and fresh from $15,422120 $215.420 costs and interest. Ziegler car company ensures your property to fire and storm damage. If the company was to complete one on the property, you could $1,500,000 per year costs. The company estimates that on average you losses of 1 200 $000 per year. Only $525,000 worth of losses were about the year 2012. How many total expenditure or loss of Ziegler for 2012 must be recognized? one. $525,000 loss and without insurance. 5. short-term liabilities and contingencies 13-45 5. The ability to understand, to refinance a short-term obligation can with a de-pasado. Refinancing the obligation by issuing long-term debt after the deadline, but before he has pronounced. b. place you closed b. a financing agreement, with which the company long-term debt to refinance. the issuance of shares of securities, but before it is pronounced c. refinancing, makes the commitment after the date. d. all of these. 46. which of the following statements is false? a. a company may exclude a short-term financial liabilities, if the company intends to refinance the obligation on a long-term and demonstrated an ability to complete the refinancing. b. in cash are as stated note liability as by the Board of Directors. c. using the method for cash, warranty as fees are free for free. Taxes. d. FICA withheld the salary of the employee never controls need to be recorded as a liability as an employer the final sums drawn from communicating to the competent tax authority. 47 which of the following is not a precise statement about VAT? Sales taxes are expenses of the seller. B. number of VAT registered companies account sold. If taxes be included in the sale is the first step to the VAT amount calculate c. to share sales by 1 plus the rate of sales tax. Question: Vrai. 48 S. If you exclude the requirement for short-term debt, refinancing the notes which describes this event should include the following except a. General description of the financing agreement. b. the terms and conditions of the new obligation incurred or suffered. c. guarantee conditions of equity should be presented or exhibited. d. the number of financial institutions have refused, the debt, the RS Echeant. 49 s to refinance. In accounting, the difference between the two benefits are paid, and accumulated rights is usually for a long period of occupation, the accumulated rights. B. acquired rights are subject to any future staff. c. the rights arising, it a legal framework and the commitment of the company, whereas accumulated rights at the end of the accounting year in which. d. of vested rights carry a fixed amount $ due to the employee; accumulated rights make no financial compensation.P 50 A net wage (or House) workers depends on the gross income minus the amount of the withholding tax on income and a shift to employee unemployment taxes FICA. Employer and part B. FICA and unemployment control. Part of the FICA taxes unemployment taxes and voluntary deductions (c), part of the FICA taxes and voluntary deductions (d), 20 test of 13-20 for advanced accounting Edition125 XIV. In the course of the year 2011, co Stabler. Introduces a new range of machines, guaranteed for three years against manufacturing defects. Building on experience in the industry, guarantee that the costs for the year of sale, 3% to 2% of sales are estimated the following year sales and 4% in the second year after the sale. Sales and taxes for the first three years were as follows: guarantee the cost of sales of $1 000 000 400 000 2011 2012 2013 6 000 40 000 1 400 000 $ $ $90,000 2800000136000 much Stabler 31 December 2013 liabilities must declare? b. c. $36 000 $0 $28,000 d. v. $116,000126. LeMay Frosted Flakes company offers its customers a pottery cereal Bowl if they box tops 4 boxes of LeMay Frosted Flakes $1 to send. The company estimates that 60% of the box will be refunded tops. In 2012, the company sold 500,000 boxes of frosted flakes and customers redeemed 220,000 box tops get 55,000 bowls. When LeMay should register trays at cost to the company of $3, as early earrings responsible before the end of 2012. d. b. c. $60,000 $40,000-150,000 $84, 000Use Square Enix on all questions, 127, 128 and 128 co. Mott, it contains a coupon in each bag of dog food, which sells it. In Exchange for eight coupons, customers receive a belt. The straps cost Mott-3. Mott estimates that 40% of the Thecoupons will be refunded. Here are the figures for 2012 and 2013: 2012-2013-bags of dog food sold 600,000 500,000 belt 22 000 000 bought 120.150 18000 coupons. redeemed 000127. The premium for the year 2012 will cost $37.500. b. $45.000. c. $52,500. d. $ 75, 000.128. responsibility for premium on December 31, 2012 is $11.250. b. $15.000. c. $26.250. d. $ 30,000 Banco del 13-6 for accounting, try 14 51 Edition agent. Which of these do not appear in the burden of the employers of labour? A. fica (social security) Federal Republic control unemployment v. CHR. State unemployment taxes federal tax d. 52. Which of the following statements is a prerequisite for the entry of a liability for the cost of compensation for future absences? r. obligation refers to rights or collect. b the payment of compensation is likely. c. the obligation are eliminated on employee services already performed. d. all these are prerequisites for the accumulation. 53. a liability for a absences such as vacations, for which it is intended that employees receive, must be selected. accrued during the period, when the compensated time is expected will be used by employees. b. be accrued in the period following revocable. c. be accrued during the period when. Question: You have no interest, unless a written contractual obligation. 54. the amount of the liability to pay should be based on 1. current rates of pay if employees receive the right to repayment. 2. future payment rates will be paid when employees use compensated time. (3) the present value of the amount to be paid in the future plan periods. a 1 b 2 3 d. may 1 or 2. 55 offset that the missing? A. unpaid leave. b. a form of medical care. Deductions from the payment of ad, time at your disposal. 56, that the obligation gives rise, a liability for the cost of collecting the paid? It is likely that a payment. Employee's rights b. vest or collect. c. can be reasonably estimated. d. all of it. is 57 conditions under which an employer is obliged to collect a liability for the sickness benefit? Compensation for in-kind contributions can be reasonably estimated. B. granting benefits vest. Compensation for benefits is equivalent to 100% of the compensation. To be able to collect benefits by d. grant. try Alpaca-8 for accounting, Edition 65 14 agents. Which of the following sets of conditions leads to the accumulation of a current event under the ordinary accounting principles? one. Amount of the loss is reasonably dignified and event occurs infrequently. * the amount of the loss is reasonably dignified and event is probable. c. event is unusual in nature, and the event is likely. d. event is unusual in nature and occurs only rarely. 66 Jeff Beck is a farmer, the land bordering the railroad crossing North. August 10, 2012, acknowledged as a result of the negligence of the Hay railway, which was burnt farm and burned. Beck had a dispute with the railroad for several years on a small plot of land. The railway representative offered to cede all rights may be iron on Earth to Beck road in Exchange for a release of its right to a refund for the injury suffered it fire. Beck seems inclined to accept the offer of the railway. 2012 railway budget should contain the following incident: A. recognition of loss and the creation of an obligation for the value of the land. B. recognition of the loss of the only. exclusive competence for the creation of d. note of the revelation in form. 67. an emergency can accumulate. It is true that the contested amount available are medium. b. asset may be impaired. c. the amount of the loss can be determined, and it is probable that an asset is impaired or a liability. Question: it is probable that an asset has deteriorated or is a liability, even if the amount of the loss can be estimated reliably. 68. contingent liability a. definitely exists as a liability, but the quantity and expiration date are determined. b. collecting while not adequately appreciated. c., which you are exposed in the financial statements. Question: is the result of a loss contingency. 69. to store active retirement obligation (ARO), the cost of the ARO as an expense is passed. b. in the carrying amount of the related long-lived resource contain. c. contain a separate account. d. None of that. 70. a company is legally by the costs associated with removal of long duration A., only then good, if someone else for the tasks of the retirement age. b. If activities with their work and material. c. hires another party, performing task of the payout or the activity. . d. If it is probable that the asset will be deleted. 13.10.10 test for accounting, 14TH Edition 77 brokers. Describes best the construction method of accounting for the cost of the warranty? an expensed when paid. b. be expensed, if requests are met. c. expensed based on estimates of the year of the sale. . d. expensed incurred. Describes the best basic accounting efectivo of warranty, 78? an expensed, based on estimates of the year of the sale. B. expensed, if the responsibility is carried out. c. are recorded as expenses when requests are met. . d. expensed incurred. 79. which of the following is a characteristic of the concept for the security deposit for costs, but guaranteed no customers? estimated liabilities under the guarantee. b guarantee costs, guarantee of income c. does not deserve. Guaranteed double income, 80th in an electronics store and runs a promotion where every game is purchased, the customer receives a payment coupon to buy a second group with 50% discount. The vouchers will expire in one year. The information store detects usually a gross margin of 40% of the selling price of video games. A purchase with coupon discount as you explain it? one. Due to the reduction of turnover on the price of the gift voucher is expensed to the premium account. b. the difference between the cost of video games and the money received is considered as premium costs. Premium editions BC is not recognized. d. the difference between the cost of video games and sell before the coupon price is taken into account as premium expenses. are 81 under what conditions required to recognize the task of active retirement? an existing legal obligation and reasonably estimate the amount of responsibility. B. companies can reasonably estimate the amount of the customs debt. c. company has a legal obligation exists. d. obligation occurred. What the following sign an officials waiting for your trial or not are the factors that are considered when assessing? a time when the cause of action has occurred. b. the disputes involved. the likelihood of a negative outcome. . d. the ability, a reasonable estimate of the amount of the loss making. 13-16-16 test bank for intermediate accounting, Edition107 XIV. Everyone (I suppose it worked continuously through the 2012 and 2013) used at the end of the year its 50 employees 12 days of vacation a year if most Gets a company. The Festival builds and can be taken from 1 January of the following year. Employees 8 hours per day. You made in the year 2012, $21 per hour, and in 2013, did $24 per hour. In the year 2013 they took each on average 9 days vacation. Enterprise policy must register at the end of each year, the wages of the same year for obligations. Vacation liability reflects or in the households of 2012 and 2013혼다 $100.800. b. $140.400 $115-200; $144,000 V $100.800. d $ $144,000 115200; $140,400108. Everyone (I suppose it worked continuously through the 2012 and 2013) used at the end of the year its 50 employees 12 days of vacation a year if most Gets a company. The Festival builds and can be taken from 1 January of the following year. Employees 8 hours per day. In the year 2012 has made $24.50 / HR and in 2013 from $28 per hour. In the year 2013 they took each on average 9 days vacation. Enterprise policy must register at the end of each year, the wages of the same year for obligations. Vacation liability reflects or in the households of 2012 and 2013혼다 a. $117.600; b. $163.800 $134.400; $168,000 V $117.600; $168,000 d $134.400; $163,800109. The company payroll teeter for October 2012 was $600,000, employees certain including represented $150,000 amounts over $106.800. Amounts shown in $500,000 employees and more than the maximum of $7,000 for unemployment control. $150,000 in federal taxes and $15,000 fees were held. State unemployment tax is 1%, the Federal Republic of unemployment rate. 8% and the fee is $106.800 Stathis 7.65% of the salary and 1.45 percent higher than $106.800. teeter it should record as income tax? a $197.700. b. $188.400. c. $38.400. d. $ 400 47. use the following information for questions 111 and 110. employs 35 staff working Lermontov Vargas 8 hours a day and paid on time. 1.2011 in January launched the company a program staff provide 10 days paid leave Falla. Vacation days earned in 2011 may be January 1, 2012. Details of these employees are the following: holiday vacation days earned used the year salary per hour per employee for each employee 21.50 $10 0 2011 2012 2013 22.50 10 8 10 10Vargas 23,75 chose accumulate liability for a absences RELOCATING the payment rates Ineffect if that WINS was. 13 intermediate accounting, 4 Bank of the XIV Edition 38. What is the rebate to pay zero interest note? a. the discount provides lenders costs to support the note. b. the discount represents the creditworthiness of the borrower. c. the discount represents the cost of borrowing. d. the discount provides the distribution of the amounts not recoverable. 39. where enforceable through debt on the consolidated financial statements of the debtor fails with creditors? a non-current liabilities. B. short-term liabilities, intends that the creditors who call, the debt in the year, if no non-current liabilities. c. passive on the foot, if it is likely that the creditor the debt in the year, if no non-current liabilities call. short-term liabilities (d), 40. which of the following statements is not a necessary condition, to exclude the requirement for short-term debt? a. intended long term refinance the obligation. b. payable in one year. c. show: complete the refinancing. d. then refinance the long-term commitment. 41 no proof as regards the possibility of consumption show a refinancing of short-term debts what follows? one. Management said it will refinance the obligation. b. the funding required. c. ask the ability under the financing arrangements, which allows the requirement to refinance. d. sign a financing agreement, the clearly the entity, can refinance the obligation. 42. a company has declared a dividend of its cumulative preference shares for three years. What is the accounting treatment required or disclosure in this situation? a record of a provision for the sum of undeclared dividends share favorite. b. show the amount of the dividends in arrears. c. save a provision for dividend in the current year only. d. no recognition is necessary. 43 which of the following situations can result in income. a. provide customers with commercial loans. B. sale of the inventory. Sales v. subscriptions to magazines. d. warranties of the manufacturer. 44. among the following which is what is right? a. a company may exclude a short-term financial liabilities, if the company intends to refinance the obligation on a long-term. b. a company can a short-term financial liabilities, exclude, if can prove the company, the ability to consummate a refinancing. c. a company may exclude a short-term debt when it paid after the balance sheet date and subsequently replaced by long-term loans, until the balance is issued. d. None of that. 13-2 test by accounting, 14. Issue 26. Which of the following statements may be a short-term liabilities? Deposits by A. b. held back on income from deferred revenue customers c. d. Of these 27. Which of the following statements is a short-term liabilities? A. bonds (for an adequate sinking fund properly classified as a long-term investment) period of three months. B. obligations with a term of three years. v. bonds (for which there is an allocation of retained earnings) in eleven months. d obligations. Refund if in eight months, there is no doubt as to the merchantability of the question of the reimbursement. 28, what follows is not the liabilities at the end of the year be taken into account in the section? A. trade notes notes c numbers interest payable b. short-term 0 (zero). Reducing free short term notes. You are all inclusive 29. Which of the following statements is a short-term liabilities? Favorite: Dividends dividends B. Mora payable in the form of additional shares, c has. A cash dividend payable to shareholders: d. this 30 dividend distributable are to classify as an expense in the profit and loss account. B. balance sheet as an asset. c. the liabilities side of the balance sheet. d. balance sheet as part of the shareholders. Intermediate accounting 22, 14th edition test bank 13-22 what is the responsibility of the warranty ends expensive 2013? one. b. $38,000 $58.000. c. $98,000. d. $ 16, 000.133. 3, 2012, in possession of a machine, the cost of $300,000 Boyer Corp. was depreciation $180,000, estimated residual value was $18,000 and market value was $480.000. January 4, 2012, this machine was irreparably by Pino Corp. was damaged and unusable. In October 2012, a court awarded damages of $480,000 against pine for Boyer. December 31, 2012, the end result of this case was in the appeals process and therefore was uncertain. However, the Council of a consultant for Boyer, pine opposition will be rejected. The December 31, 2012, which should accumulate lot Boyer for this gain contingency? $480 000 b. $390.000. c. $300,000. d. $0,134. Fuller's sells food vouchers for the consumer, the (in the or before the expiration date) may be to grocery stores for discounts on some products by fuller. Grocery stores will be reimbursed when they send the coupons to fuller. Most extensive experience, 50% of these coupons are redeemed and usually a month elapsed between the time that a grocer receives receives a voucher for a consumer and the fuller. In the year 2012, fuller has issued two different series of the following coupons: total disbursed amount issued consumer expiration date the total value 12/1 12/31/12/1 500 000 $ $ 6/30/236 000 12 12-1-7 720 000 31.12.12 300000 entries that flows to this day unique in the cash vouchers and fresh loans for $715.000 drawn on. 31 December 2012 balance sheet to record, liability for redeemed vouchers for a. $ 0 b. $60.000. c. $124,000. d. $ 360, 000.135. below are the details of the company of Morton. Ongoing tasks of the liabilities by $4,000 cash investments debtors invoice 61000110000 75000 is deferrals total $30,000 total 280000 in current circulation $110,000. The acid test ratio Morton is 2.55: 1 b. 1 to 2,27. 1.27 up 1 d 0, 72-1 14 13-14 test bank for intermediate accounting, 14th edition 98th 10 February 2012, home with after the release of his budget 2011, company has a financing agreement Lebo Bank, for the company to borrow up to 6 000 $000 signed at any time until 2014. The head of Government banks and maturity pile of 2% above the interest rate loan under the terms of the agreement two years from the date of the loan. Home company has $2,250,000 banknotes currently payable with first National Bank due March 15, 2012. The company intends to borrow $3.750.000 under the agreement with Lebo and payable on the first note to liquidate. The agreement with Lebo also requires the House, a working capital fund of $9,000,000 to maintain and the payment of dividends on ordinary shares without approval by Lebo prohibits Bank. Since only the above information is the total number of the short-term debt of the company from the date of 31 December 2012 budget $ 0 b. $ 2.250.000. c. $ 3,000,000. d. $ 6.000.000. 99. the Wellness-Spa Hotel has more December 31, 2012, in the short term to paying tickets 4 000 $000 due 14th February 2013혼다 January 2013, Wellness Spa Hotel has more the line of credit at the Bank organized Hotel allows the Wellness Spa more up to 3 000 $000 to borrow money by one per cent above the base rate for three years. 2. February 2013, Wellness Spa Hotel $2,400,000 County Bank had borrowed and uses effective additional $1,000,000, in the short term due to liquidate a $3.400.000 notes. The amount payable which must short-term bonds that are declared on the passive side of the budget of 31. December 2012, which will be released on March 5, 2013 is 0 €. b. $600.000. c. $ 1,000,000 is $ 1.600.000. use d 100 and 101 questions to Stine co is a trader who works in a State with a retail sales tax of 6%. The seller can hold 2% taxes collected. Co. Stine registered VAT on sales. Is recorded, taking into account the proceeds from the sale in May was $222.600.100. is the value added tax (to the nearest dollar) for may A. $13.089. b. $12.600. c. $13.356. d. $ 14, 157.101. Is to pay the amount of tax (to the nearest dollar) to the State for the month of may A. c. $12.826. b. $12.348. $13.089. d. $ 13.873. current liabilities and contingencies 13-331. That which follows what not as a short-term liabilities A. current maturities of long-term debt to look at. B. tax payable. c. liabilities in the short term to refinances. d 32 not earned revenue. A story that as a short term liability be considered is A. dividends of in stock companys. b. balances accounts liabilities, claims. c. losses should be higher than the companys insurance coverage in the next twelve months. d. None of these. 33. which of the following is characteristic of a passive power but no long-term liability? an inescapable obligation. B. obligations of existed the use of cash, services or carrying out the probable future transmission. v. liquidation is reasonably require the use of existing resources, classified as to create asset value or other short-term liabilities. d. transaction or other events create liability has already taken place. 34. which of the following is not part of the definition of a liability? an inescapable obligation. B. transaction or other events, creating liability already occurred. c. present obligations from which were use of cash, services or carrying out the probable future transmission. d. resolution must reasonably require the use of existing resources, classified as an asset or create other liabilities. current 35. Why is the liabilities in the balance sheet of fundamental importance for the bankers? a. to evaluate the quality of the lender. b. to assist the understanding of the liquidity of the company. c. to better understand the sources of payment. d. review performance efficiency. 36. What is the ratio of short-term liabilities and a companys operating cycle? Settlement of short-term debts is somewhat in the company of operating cycle (one year or less). B. short-term liabilities is the result of the operation of transactions. Circulation v. taxable cannot exceed the amount in question in a cycle. d. There is no relationship between the two. 37. What is the relationship between the current value and the concept of responsibility? one current values are used to measure certain liabilities. B. current values are not used to measure liabilities. c. cash values are used to measure the tasks. d. current values only serve to measure the long-term debt. 13 liabilities and contingencies 13-1392. September 1, $13,300 bought Hydra of inventory on credit with 1/15, net 30 terms, FOB destination. Transport costs were $280. On September 18 was paid at the time of purchase. Assuming that uses the Hydra of the perpetual inventory system and accounting for discounts on purchases, is it recorded as inventory of this purchase? $13.167. b. $13.447. c. $13.580. d. $ 13.300.93. soda Inc. had paid $280,000 on the 1st of April. Note requires to be paid to the participation of 12% and a year. Recognized as much interest for the period from 1 April up to 31 December? one. $ 0 b. $33.600. c. $8,400. d. $ 25.200.94. collar provided by $350,000, on July 1 and is obligated to pay $360,000 on March 1. Amount is payable October 1 taken note and had recognized how much interest from October 1 up 31 December? a $350,000 and $ 0 $350,000 and $6.000. c. $360,000 and $ 0 d $350,000 and $10,000. 95. clean, because on February 28 from $2 million is payable. The company has borrowed $1 600 000 applications for February 25 (Note 5) and used for the ticket of $2 million and other cash flows used the profits to pay the balance. How many of the $2 million survey would be long-term budget by 31 December. $2 000 000 b. $ 0 c. 1 600 $000. . d. $ 400, 000.96. Vista sold 6,000 annual subscription 1 125 newspapers $ September St. where income is not it acquired the 31.12? a. $ 0 b. $500 000 c. $250,000. d. $ 750, 000.97. to acquire cash sale $221.000 in during the month of October. Sales are subject to a tax of 6%, which was also recorded. Which of these proposals will be included in the daily summary for sale account be? a crate. free $221.000. B. credit is derived from the sale of $208.490. by credit of the fee for the sale of $12.510. c. d. pay credit sales of $13.260. current liabilities and contingencies 13-9 9 71. New products against defects for three years, providing leading materials a company (1) good manufacturing practice, quality control (2) a cycle of a year, (3) a relatively stable year revenue and (4) a policy but rather stable warranty repair or replacement thought. A responsibility. the guarantee should be reported as long-term. b. should be reported with the current name. c. must be declared in the current scope and long-term part. d. must not be exposed you. 72 Ortiz Corporation, a manufacturer of household paints, the annual budget in 31. Prepare for December 2012. Hit by a threat to health in one of his paintings recently it is sold the Government has clearly its intention to remember Ortiz, cans of paint in the last six months. Ortiz, management felt that this recall would cost a $800,000. What recognition accounting as appropriate, if this situation? a. reserves the right no recognition b. Note disclosure only c. $800,000 cost and responsibility credit benefit d. $800,000 $73 800000. retained earnings information prior to the publication of the annual accounts means that it is likely that at the balance sheet date, obligations, the guarantee on the product have given a responsibility. The questionable amount of loss cannot be estimated reliably. On the basis of the above facts, should an estimated loss contingency a. accrued. b recognized but not anticipated. c. not anticipated or disclosed. . d. as a use of the Bilanzgewinns.P 74. Espinosa co. There is a possibility of cumulative losses. The amount of the losses are only reliably estimated within a range of results. No single amount within the range is a better estimate than any other. The accumulation of loss should a. null match. b. the minimum of the range. c. the average range. d. is the maximum number of Echelle. 75 S. Dean company deliberately a claim after the balance sheet date, but before publication. A loss and the associated liability are to indicate in the financial statements if the amount determinable, most likely a negative result and a. Dean blames to companies. b the Court will decide the case within a year. c. appear the damage material. d. during the reporting period, the financiers use the cause of action. 76 S. method of accounting entries for A. encountered cost warranty this product for the purposes of the federal income tax is required. b., which often is justified for reasons of convenience the commissions to guarantee are important. c. find the expense account is applied, if the seller under guarantee. d. represents accepted practice and should be used if the warranty is a part of the sale are integral and inseparable. short-term liabilities 13 and 11-contingencies 83. How the relationship the litmus test to determine? a. the sum of cash and short-term investments, divided by current liabilities. b. enable divided by current liabilities. c. the assets by current liabilities divided. d. the type of sum, short-term investments and net debtor accounts divided between short-term liabilities. 84 the following to find the current value of the company? a. the amount of slow inventory. b. the efficient use of resources. the liquidity of the company. S. d. economic viability of the companies. 85, which of the following is not acceptable treatment for the presentation of liabilities? A. recording of short-term debts in the order of the passive list of mature b after compensation liabilities c. against assets amount on their liquidation d. liabilities immediately below the requirement for a presentation of the work of CapitalP 86 show applied. The ratio of working capital in the short-term liabilities is called a. current ratio. B. acid test ratio. Volume v. current assets ratio. Relationship between the volume of sales by d. current liabilities. 87 charges are accrued on the balance sheet with a subject to a reference to instructions. b. the amount of the liabilities, but the shows not extends on full responsibility. c. an appropriation not adverse out profits. . d. According to they classify regular liabilities in the balance sheet. 88. the counter the acid test ratio consists of A. total current assets. Cash and cash equivalents and marketable securities. the species c. and net debtors accounts. d. cash, securities and net receivables. 89. each of the following items are included in the current ratio and ratio prueba except a. effective acidity. B. short-term investments. Accounts receivables NET bearing C d, etc,.