1 - The journal entry a company uses to record the estimated product warranty li

Question

1 - The journal entry a company uses to record the estimated product warranty liability expense is

A. debit Product Warranty Expense; credit Product Warranty Payable

B. debit Product Warranty Payable; credit Cash

C. debit Product Warranty Payable; credit Product Warranty Expense

D. debit Product Warranty Expense; credit Cash

2-

Quick assets include

A. cash, cash equivalents, receivables, and inventory

B. cash, cash equivalents, receivables, prepaid expenses, and inventory

C. cash, cash equivalents, and receivables

D. cash, cash equivalents, receivables, and prepaid expenses

3 -

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 40,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding?

A. 50,000

B. 10,000

C. 30,000

D. 40,000

Explanation / Answer

Answers

1.A. debit Product Warranty Expense; credit Product Warranty Payable

2.C. cash, cash equivalents, and receivables

Quick asset=current asset-inventory-prepaid expenses

3.C.30000(40000-10000)

They re aquired 10000 shares so it will be 30000

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