Refer to the Following List of Liability Balances at December

question 207

Multiple Choice

Refer to the following list of liability balances at December 31,2019. $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 15,000 \\\hline \text { Employee Health Insurance Payable } & 1150 \\\hline \text { Employee Income Tax Payable } & 600 \\\hline \text { Estimated Warranty Payable (Due 2020) } & 1400 \\\hline \text { Long-Term Notes Payable (Due 2022) } & 40,000 \\\hline \text { FICA-OASDI Taxes Payable } & 1060 \\\hline \text { Sales Tax Payable } & 670 \\\hline \text { Mortgage Payable (Due 2023) } & 15,000 \\\hline \text { Bonds Payable (Due 2024) } & 54,000 \\\hline \text { Current Portion of Long-Term Notes Payable } & 10,500 \\\hline\end{array}$$ What is the total amount of long-term liabilities?

• A) $55,000
• B) $109,000
• C) $94,000
• D) $40,000

Recognize the requirements for properly terminating an agency relationship and the importance of notice to third parties.

Differentiate between expressed agency, implied agency, apparent agency, and agency by ratification.

Identify the roles and obligations within an agency relationship, including those of agents and principals.

Distinguish between different forms of authority (express, implied, and apparent) in establishing an agency relationship.

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Definitions:

Free Cash Flow

The amount of cash generated by a company after accounting for operational expenses and capital expenditures.

Poor Performance

A situation where an individual or entity fails to meet established standards or expectations in terms of output, efficiency, or effectiveness.

Direct Method

A method of preparing the cash flow statement where actual cash flows from operating activities are listed, as opposed to the indirect method which adjusts net income for non-cash transactions.

Net Cash Provided

The amount of cash generated through a company's operations, after accounting for outflows and inflows.