Question 1

If a short-term obligation is excluded from current liabilities because of

refinancing, the footnote to the financial statements describing this event should
include all of the following information except:
A. a general description of the financing arrangement.
B. the terms of the new obligation incurred or to be incurred.
C. the terms of any equity security issued or to be issued.
D. the number of financing institutions that refused to refinance the debt, if
any.Question 2
Williams Co., which has a taxable payroll of $300,000, is subject to the FUTA
tax of 6.2% and a state contribution rate of 5.4%. However, because of stable
employment experience, the company's state rate has been reduced to 2%.
What is the total amount of federal and sate unemployment tax for Williams
Co.?
A. $35.100
B. $24,600
C. $12,000
D. $ 8,400

Question 3
A liability has three essential characteristics, which of the following is not one of
them?
A. it is a present obligation that entails settlement by probable future transfer or
use of cash, goods, or services.
B. The obligation must be liquidated using cash, goods, or services that were
earned by the entity in the performance of their normal business operation.
C. The liability must be an unavoidable obligation.
D. The transaction or other event creating the obligation must have already
occurred.