The Balances of Select Accounts of Sandra Company as at December

question 38

Multiple Choice

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: $$\begin{array} { | l | r | } \hline \text { Notes Payable-short term } & \$ 1,200 \\\hline \text { Salaries Payable } & 4,000 \\\hline \text { Notes Payable-long term } & 25,000 \\\hline \text { Accounts Payable } & 3,200 \\\hline \text { Unearned Revenue } & 2,000 \\\hline \text { Interest Payable } & 2,500 \\\hline\end{array}$$
-Refer to the table above.The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total current liabilities shown on the balance sheet?

• A) $5,700
• B) $10,400
• C) $12,900
• D) $11,700

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Definitions:

Held-To-Maturity Securities

Debt securities that a company intends and is able to hold until they mature.

Equity Method

An accounting method used to assess the investments made by a company in other companies, where the investment is significant but not controlling.

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits.

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for, typically reported on an income statement.