The Balances of Select Accounts of McCarthy Company as of December

question 50

Multiple Choice

The balances of select accounts of McCarthy Company as of December 31, 2016 are given below: The Unearned Revenue is the amount of cash received for services to be rendered in January 2017. Interest Payable will be paid on February 5, 2017. What are the total long-term liabilities shown on the balance sheet?

• A) $1,300
• B) $5,000
• C) $5,400
• D) $21,000

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Definitions:

Less-Value Stock

Stock that is currently trading for less than the perceived value of the company, potentially indicating an undervalued investment opportunity.

Profit Allocation

The process of distributing a company's earnings among its shareholders, partners, or other stakeholders according to agreed-upon terms.

Preponderance Of Evidence

A standard of proof in civil cases, requiring that a claim be more likely true than not true.

De Jure Corporation

Latin for “lawful corporation” a corporation that has met the mandatory statutory provisions and thus received its certificate of incorporation.