On March 1, 2015, Vinnie Services Issued a 5% Long-Term

question 114

Multiple Choice

On March 1, 2015, Vinnie Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2016. How will this information be shown on the balance sheet dated December 31, 2015?

• A)$15,000 shown as current liability only
• B)$5,000 shown as current liability; $15,000 shown as long-term liability
• C)$5,000 shown as current liability; $10,000 shown as long-term liability
• D)the entire $15,000 shown as long-term liability

---

Definitions:

Sign Test

A nonparametric test used to determine if there is a significant difference between paired observations, by analyzing the signs of differences without assuming any particular distribution.

Median Score

The midpoint value in a set of scores, where half of the scores are above it and half are below, often used as a measure of central tendency.

Level of Significance

A threshold in hypothesis testing that determines whether the null hypothesis can be rejected, often denoted by alpha (α).

Significance Level

A threshold within hypothesis testing that determines whether to reject the null hypothesis, often denoted by alpha (α) and representing the probability of a Type I error.