Chapter 12, Problem 12.1TI

1.

To determine

Liabilities: Liabilities are the obligations of the business to pay the creditors and others, towards purchasing goods and services on account, and/or other financial benefits received. Liabilities can be short term (current liability) or long-term depending upon the time it is paid-off. While current liabilities are paid within one year, on the other hand, long-term liabilities are paid over one year period.

1.

To identify: The types of borrowings

2.

To determine

To explain: Meaning of commercial paper and Medium- term notes

3.

To determine

To identify: The maturity date for Company WD’s medium-term notes.