Accounts payable may also be referred to as trade payables  and are the result of goods that have been purchased on credit.

Cash payments received in advance of goods being provided  or services being performed should still be recorded as revenues.

A current liability to the federal government arises when a  business sells an item and collects HST on it.

A company with an operating line of credit has been pre-authorized by the bank to borrow money, up to a certain amount.

A refrigerator is sold in year 1 and is guaranteed for three years. A repair is made in year 2. The company’s entry upon making the repair would include a debit to estimated warranty liability.

Interest expense should not be recorded prior to maturity.

Current maturities of long-term debt are identified on the balance sheet as current liabilities.

Under ASPE, a contingent liability is recorded if it is likely and the amount can be reasonably estimated.

Property tax is an example of a contingent liability.

If the total receipts of $5,300 include 13% HST, the HST is equal to $518.

Current liabilities can be listed in order of liquidity.

An estimated liability should not be recorded until the exact amount is known.

Canada Pension Plan has no annual maximum pensionable earnings.

Net pay for hourly workers with no overtime can be determined by applying the hourly rate of

pay to the number of hours worked.

Employers are required to pay 1.4 times employment insurance premiums that are paid by the employees.

When a company is overdrawn at the bank as a result of using its line of credit, the amount would be shown on the balance sheet as

Recording accrued interest on a note payable would include a

Current maturities of long-term debt

Payroll costs create expenses to the employer for all of the following, except

Which of the following is an estimated liability?

Recording estimated warranty expense in the year of the sale is best known as

Customer loyalty programs are used to attract and keep customers and when accounting for these programs all of the following statements are true, except

All oft he following statements are true, except

Intracompany comparison refers to comparison with other companies to provide insight into competitive position.

Vertical analysis expresses all income statement items as a percentage of profit.

A base year is selected when performing horizontal analysis.

Liquidity ratios measure the ability of a company to meet its short-term obligations.

Current ratio, receivables turnover, and inventory turnover are measures of solvency.

Gross profit margin, asset turnover, and return on equity are profitability ratios.

The pay-out ratio is a reflection of investors’ assessments of a company’s future profits.

The debt to total assets ratio measures the percentage of total assets provided by long-term creditors.

The formula for calculating the interest coverage ratio is profit before income tax expense

and interest expense divided by interest expense.

Earnings per share is reported for both common and preferred shares.

Sales (in millions) for a three-year period are: Year 1 $4.0, Year 2 $4.6, and Year 3 $5.0. Using Year 1 as the base year, sales in Years 2 and 3 expressed as a percentage of the base year sales are, respectively, 

All of these formulas are correct, except

Net credit sales are $4,000,000 and average gross receivables are $250,000. The collection period is

The operating cycle

Earnings per share