1. 1st TRIVIA QUIZ Acctg. 4
LIABILITIES
ACCOUNT

2. 1. For a liability to exist,
a past transaction or event must have occurred.
b. the exact amount must be
known.
c. the identity of the party
owed must be known.
an obligation to pay cash in
the future must exist.

3. 2. A short-term note payable with no stated
rate of interest should be
a. recorded at maturity value.
recorded at the face
amount.
discounted to its present
value.
reported separately from other short-termnotes payable.

4. 3. In theory (disregarding any other marketplace variables), the proceeds from the sale of a bond will be equal to
a. the face amount of the bond.
b. the present value of the bond maturity
value plus the present value of the
interest payments to be made during
the life of the bond.
the face amount of the bond plus the
present value of the interest payments made during the life of the bond.
d. the sum of the face amount of the bond
and the periodic interest payments.