The Balances of Select Accounts of Sandra Company as at December

question 44

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 long-term liabilities shown on the balance sheet?

• A) $1,200
• B) $4,000
• C) $5,200
• D) $25,000

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Definitions:

Notice of Dishonor

A notification that a negotiable instrument, such as a check or promissory note, has been presented for payment and that payment has been refused.

Banking Day

A business day during which financial institutions are open for business with the public, typically excluding weekends and public holidays.

Calendar Days

The consecutive days on a calendar, including all weekdays and weekend days.

Without Recourse

A term indicating that the seller of an asset is not liable to the buyer for any defects or non-performance.