All of the following are reported as current liabilities except: a. interest payable. b. bonds payable due in 18 months. c. salaries payable. d. sales tax payable.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Answer? ? Financial accounting question

Ans

General accounting

Answer 2

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Answer 8

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To identify: The correct option related to current liabilities.

Answer 12

Answer to Problem 1QC

Option (b)

Answer 13

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Answer 14

Conclusion

Hence, the correct answer option is (b).

Answer 15

Ch. 8 - All of the following are reported as current...Ch. 8 - Prob. 2QC Ch. 8 - Prob. 3QC Ch. 8 - What is accounts payable turnover? a.Purchases on...Ch. 8 - Prob. 5QC Ch. 8 - Nicholas Corporation accrues the interest expense...Ch. 8 - Phoebe Corporation signed a six-month note payable...Ch. 8 - Prob. 8QC Ch. 8 - Backpack Co. was organized to sell a single...Ch. 8 - Prob. 10QC

All of the following are reported as current liabilities except: a. interest payable. b. bonds payable due in 18 months. c. salaries payable. d. sales tax payable.

Concept explainers

Videos

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 8 Solutions