Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. List A List B 1. An IOU promising to repay the amount borrowed plus interest. 2. Payment amount is reasonably possible and is reasonably estimable. 3. Mixture of liabilities and equity a business uses. 4. Payment amount is probable and is reasonably estimable. 5. A liability that requires the sacrifice of something other than cash. 6. Long-term debt maturing within one year. 7. FICA and FUTA. 8. Informal agreement that permits a company to borrow up to a prearranged limit. 9. Classifying liabilities as either current or longterm helps investors and creditors assess this. 10. Amount of note payable × annual interest rate × fraction of the year. a. Recording of a contingent liability. b. Deferred revenue. c. The riskiness of a business’s obligations. d. Disclosure of a contingent liability. e. Interest on debt. f. Payroll taxes. g. Line of credit. h. Capital structure. i. Note payable. j. Current portion of longterm debt.
Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. List A List B 1. An IOU promising to repay the amount borrowed plus interest. 2. Payment amount is reasonably possible and is reasonably estimable. 3. Mixture of liabilities and equity a business uses. 4. Payment amount is probable and is reasonably estimable. 5. A liability that requires the sacrifice of something other than cash. 6. Long-term debt maturing within one year. 7. FICA and FUTA. 8. Informal agreement that permits a company to borrow up to a prearranged limit. 9. Classifying liabilities as either current or longterm helps investors and creditors assess this. 10. Amount of note payable × annual interest rate × fraction of the year. a. Recording of a contingent liability. b. Deferred revenue. c. The riskiness of a business’s obligations. d. Disclosure of a contingent liability. e. Interest on debt. f. Payroll taxes. g. Line of credit. h. Capital structure. i. Note payable. j. Current portion of longterm debt.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.
| List A | List B |
| 1. An IOU promising to repay the amount borrowed plus interest. 2. Payment amount is reasonably possible and is reasonably estimable. 3. Mixture of liabilities and equity a business uses. 4. Payment amount is probable and is reasonably estimable. 5. A liability that requires the sacrifice of something other than cash. 6. Long-term debt maturing within one year. 7. FICA and FUTA. 8. Informal agreement that permits a company to borrow up to a prearranged limit. 9. Classifying liabilities as either current or longterm helps investors and creditors assess this. 10. Amount of note payable × annual interest rate × fraction of the year. |
a. Recording of a b. Deferred revenue. c. The riskiness of a business’s obligations. d. Disclosure of a contingent liability. e. Interest on debt. f. Payroll taxes. g. Line of credit. h. Capital structure. i. Note payable. j. Current portion of longterm debt. |
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