(Solved by Humans)-Which of the following is false about an income statement? Items that cannot be measured reliably ar

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Which of the following is false about an income statement? Items that cannot be measured reliably are not reported in the income statement. It is used to measure the solvency of a company. Income measurement involves judgment. Income numbers are affected by the accounting methods employed What would you pay for an investment that pays you $20,000 at the end of each year for the next twenty years? Assume that the relevant interest rate for this type of investment is 12%. $167,316. $1,441,048. $20,733. $149,389. Which of the following is true? Rents occur at the beginning of each period of an ordinary annuity. Rents occur at the end of each period of an annuity due. Rents occur at the beginning of each period of an annuity due. None of these answer choices are correct. According to FASB concepts statement No.6, purchase commitments include only the right to receive assets. True False Which of the following is a current liability? A long-term debt maturing currently, which is to be paid with cash in a sinking fund A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue A long-term debt maturing currently, which is to be converted into common stock None of these answers are correct. Which of the following is not a factor that is considered when evaluating whether or not to record a liability for pending litigation? Time period in which the underlying cause of action occurred. The type of litigation involved. The probability of an unfavorable outcome. The ability to make a reasonable estimate of the amount of the loss. How do you determine the acid-test ratio? The sum of cash and short-term investments divided by short-term debt. Current assets divided by current liabilities. Current assets divided by short-term debt. The sum of cash, short-term investments and net receivables divided by current liabilities. Slack Inc. borrowed $320,000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? $0. $38,400. $25,600. $28,800. Presented below is information available for Marley Company. Current Assets       Cash                                                 $    4,000       Short-term investments                       65,000       Accounts receivable                            61,000       Inventory                                            110,000       Prepaid expenses                                30,000                   Total current assets             $270,000 Total current liabilities are $100,000. The acid-test ratio for Marley is: 2.80 to 1 2.40 to 1 1.30 to 1 0.69 to 1 Excom manufactures high-end whole home electronic systems. The company provides a one-year warranty for all products sold. The company estimates that the warranty cost is $225 per unit sold and reported a liability for estimated warranty costs $7.8 million at the beginning of this year. If during the current year, the company sold 60,000 units for a total of $243 million and paid warranty claims of $9,000,000 on current and prior year sales, what amount of liability would the company report on its balance sheet at the end of the current year? (assume accrual method) $2,800,000. $4,500,000. $12,300,000. $13,500,000.