Reference no: EM132679925

Problem 1. Current liabilities are

A. due, but not receivable for more than one year

B. due, but not payable for more than one year

C.due and receivable within one year

D. due and payable within one year

Problem 2. On June 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. What is the due date of the note?

A. October 8

B. October 7

C.October 6

D. October 5

Problem 3. The journal entry a company uses to record the issuance of a note for converting an existing account payable would be

A. debit Cash; credit Accounts Payable

B. debit Accounts, Payable; credit Cash

C.debit Cash; credit Notes Payable

D. debit Accounts Payable; credit Notes Payable

Problem 4. The journal entry a company uses to record the issuance of an interest-bearing note for borrowing funds for the business is

A. debit Accounts Payable; credit Notes Payable

B. debit Cash; credit Notes Payable

C.debit Notes Payable; credit Cash

D. debit Cash and Interest Expense; credit Notes Payable