Refer to the Following List of Liability Balances at December

question 121

Multiple Choice

Refer to the following list of liability balances at December 31,2018. $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 22,000 \\\hline \text { Employee Health Insurance Payable } & 1450 \\\hline \text { Employee Income Tax Payable } & 400 \\\hline \text { Estimated Warranty Payable (Due 2019) } & 1200 \\\hline \text { Long-Term Notes Payable (Due 2022) } & 37,000 \\\hline \text { FICA-OASDI Taxes Payable } & 1560 \\\hline \text { Sales Tax Payable } & 1270 \\\hline \text { Mortgage Payable (Due 2023) } & 7000 \\\hline \text { Bonds Payable (Due 2024) } & 53,000 \\\hline \text { Current Portion of Long-Term Notes Payable } & 7500 \\\hline\end{array}$$ What is the total amount of current liabilities?

• A) $35,380
• B) $27,880
• C) $27,480
• D) $26,280

Analyze the financial implications of changes in cost structures on project valuation.

Identify the factors influencing the option to wait or proceed with a project.

Comprehend the difference between soft and hard capital rationing and its impact on project financing.

Understand the fundamental components of a waiting-line system and its three main parts.

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Definitions:

Materiality

The notion of materiality guides the margin of error acceptable, the degree of precision required, and the extent of the disclosure required when preparing general purpose financial statements.

Disclosure Provisions

Legal requirements or policies that necessitate the revelation of certain information to stakeholders or the public, ensuring transparency.

Accounting Standards

Rules and guidelines set by governing bodies that dictate how financial statements should be prepared and presented.

Direct Method

A cash flow statement preparation approach that involves reporting major classes of gross cash receipts and payments.