Question

14. How to report contingent liabilities. 15. The formula for the times-interest-earned ratio and what is a good one 16. Who pays which taxes (employee, employer, both) 17. Calculate the Current Portion of a Long-Term Note Payable 18. Definitions related to Bonds Payable-principal amount, maturity date, etc 19. Calculate the Cash proceeds for bonds when issued at par, discount, or premium 20. Calculate Bond carrying amount 21. Calculate effect on Income Statement when retiring bonds. 22. Determine if liabilities are current or long term and calculate total current liabilities or total long term liabilities 23. The meaning of the debt to equity ratio (financial risk, what it means if the ratio is greater than or less than 1) 24. Calculate interest plus principal payment on long-term note payable 25. Definitions of types of bonds (serial, term, secured, debenture) 26. What is included in Paid-In Capital, definition of Paid-In Capital 27. Features of a corporation 28. JE for issuance of common stock 29. What type of account Treasury Stock is

Answer 1

14:- contingent liabilities is defined as a liability which may depending on the outcome of a event.some events may give rise to a liability,but the timing and amount is not presently sure.contingent liabilities are recorded as expenses on the income statement and a liability on the balance sheet. Contingent liabilities should be recorded in the accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated.

15:- Times interest earned ratio is calculated by dividing income before interest and income taxes by the interest expenses. Both figure can be found on the income statement.

Times interest earned ratio = Earnings before interest / Interest expenses