Which of the following transactions that impact current liabilities has a corresponding entry on the income statement?
A. Interest accrued on a note payable
B. Purchase inventory on credit from company XYZ on January 1
C. Payment to XYZ on February 1 for a January 1 purchase
D. Payment to employees in March for wages earned in February
Ans: A. Interest accrued on a note payable
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Which one of the following statements concerning Treasury bonds is correct?
A) The par values of all Treasury bonds are adjusted periodically in response to changes in the rate of inflation. B) Treasury bonds have maturity dates ranging from two to ten years. C) Interest earned on Treasury bonds is tax-exempt at the federal level. D) All Treasury securities are backed by the "full faith and credit" of the U.S. government.
Which one of the following statements correctly describes the unique feature of GNMA pass-through securities?
A) The interest income on a GNMA is exempt from state and federal tax. B) GNMAs consistently have lives of 25-30 years. C) GNMAs are backed by the full faith and credit of the issuing state. D) GNMAs pay income to holders on a monthly basis.