Chapter 8, Problem 8.1E

Determine proper classification of liabilities (LO8–1)

Match (by letter) the correct reporting method for each of the items listed below.

Reporting Method

C = Current liability

L = Long-term liability

D = Disclosure note only

N = Not reported

Item
_____	1. Accounts payable.
_____	2. Current portion of long-term debt.
_____	3. Sales tax collected from customers.
_____	4. Notes payable due next year.
_____	5. Notes payable due in two wars.
_____	6. Advance payments from customers.
_____	7. Commercial paper
_____	8. Unused line of credit.
_____	9. A contingent liability with a probable likelihood of occurring within the next war and can be estimated.
_____	10. A contingent liability with a reasonably possible likelihood of occurring within the next year and can be estimated.