The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: Cif it is a current liability, L if it is a long-term liability, or Nif it is not a liability. 1. Interest payable (due in 90 days) Item 2. Unearned revenues (to be earned over next 3 months) 3. Employee Union Dues Payable 4. Pension liability (to be paid to employees retiring in 2 to 5 years) 5. Warranty liability (6 months of coverage) 6. FICA-Social Security Taxes Payable 7. FICA Medicare Taxes Payable 8. Prepaid Insurance (6 months of coverage) 9. Sales taxes payable. 10. Pension liability (to be fully paid to retired employees in next 11 months) Classification

The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: Cif it is a current liability, L if it is a long-term liability, or Nif it is not a liability. 1. Interest payable (due in 90 days) Item 2. Unearned revenues (to be earned over next 3 months) 3. Employee Union Dues Payable 4. Pension liability (to be paid to employees retiring in 2 to 5 years) 5. Warranty liability (6 months of coverage) 6. FICA-Social Security Taxes Payable 7. FICA Medicare Taxes Payable 8. Prepaid Insurance (6 months of coverage) 9. Sales taxes payable. 10. Pension liability (to be fully paid to retired employees in next 11 months) Classification

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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