The correct option related to liabilities.

Question

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Answer 1

Question

Chapter 9, Problem 1QC

To determine

To identify: The correct option related to liabilities.

Expert Solution & Answer

Answer to Problem 1QC

Option (b)

Explanation of Solution

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Explanation for correct answer: Allowance for bad debts is a contra asset account to accounts receivable. It does not belong to estimated liability. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because estimated vacation pay is the obligation for the company that the company needs to pay to the employees. Hence, it is the liability for the company.
Option (c) is incorrect because income taxes payable is the obligation for the company that the company needs to pay to the government. Hence, it is the liability for the company.
Option (d) is incorrect because estimated warranty payable is the obligation for the company that the company needs to pay to the customers. Hence, it is the liability for the company.

Conclusion

Hence, the correct answer option is (b).

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Answer 2

Question

Chapter 9, Problem 1QC

To determine

To identify: The correct option related to liabilities.

Expert Solution & Answer

Answer to Problem 1QC

Option (b)

Explanation of Solution

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Explanation for correct answer: Allowance for bad debts is a contra asset account to accounts receivable. It does not belong to estimated liability. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because estimated vacation pay is the obligation for the company that the company needs to pay to the employees. Hence, it is the liability for the company.
Option (c) is incorrect because income taxes payable is the obligation for the company that the company needs to pay to the government. Hence, it is the liability for the company.
Option (d) is incorrect because estimated warranty payable is the obligation for the company that the company needs to pay to the customers. Hence, it is the liability for the company.

Conclusion

Hence, the correct answer option is (b).

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Answer 3

Question

Chapter 9, Problem 1QC

To determine

To identify: The correct option related to liabilities.

Expert Solution & Answer

Answer to Problem 1QC

Option (b)

Explanation of Solution

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Explanation for correct answer: Allowance for bad debts is a contra asset account to accounts receivable. It does not belong to estimated liability. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because estimated vacation pay is the obligation for the company that the company needs to pay to the employees. Hence, it is the liability for the company.
Option (c) is incorrect because income taxes payable is the obligation for the company that the company needs to pay to the government. Hence, it is the liability for the company.
Option (d) is incorrect because estimated warranty payable is the obligation for the company that the company needs to pay to the customers. Hence, it is the liability for the company.

Conclusion

Hence, the correct answer option is (b).

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Answer 4

Question

Chapter 9, Problem 1QC

To determine

To identify: The correct option related to liabilities.

Expert Solution & Answer

Answer to Problem 1QC

Option (b)

Explanation of Solution

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Explanation for correct answer: Allowance for bad debts is a contra asset account to accounts receivable. It does not belong to estimated liability. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because estimated vacation pay is the obligation for the company that the company needs to pay to the employees. Hence, it is the liability for the company.
Option (c) is incorrect because income taxes payable is the obligation for the company that the company needs to pay to the government. Hence, it is the liability for the company.
Option (d) is incorrect because estimated warranty payable is the obligation for the company that the company needs to pay to the customers. Hence, it is the liability for the company.

Conclusion

Hence, the correct answer option is (b).

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

Answer 5

Chapter 9, Problem 1QC

To determine

To identify: The correct option related to liabilities.

Expert Solution & Answer

Answer to Problem 1QC

Option (b)

Explanation of Solution

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Explanation for correct answer: Allowance for bad debts is a contra asset account to accounts receivable. It does not belong to estimated liability. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because estimated vacation pay is the obligation for the company that the company needs to pay to the employees. Hence, it is the liability for the company.
Option (c) is incorrect because income taxes payable is the obligation for the company that the company needs to pay to the government. Hence, it is the liability for the company.
Option (d) is incorrect because estimated warranty payable is the obligation for the company that the company needs to pay to the customers. Hence, it is the liability for the company.

Conclusion

Hence, the correct answer option is (b).

Answer 6

Chapter 9, Problem 1QC

To determine

To identify: The correct option related to liabilities.

Expert Solution & Answer

Answer to Problem 1QC

Option (b)

Explanation of Solution

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Explanation for correct answer: Allowance for bad debts is a contra asset account to accounts receivable. It does not belong to estimated liability. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because estimated vacation pay is the obligation for the company that the company needs to pay to the employees. Hence, it is the liability for the company.
Option (c) is incorrect because income taxes payable is the obligation for the company that the company needs to pay to the government. Hence, it is the liability for the company.
Option (d) is incorrect because estimated warranty payable is the obligation for the company that the company needs to pay to the customers. Hence, it is the liability for the company.

Conclusion

Hence, the correct answer option is (b).

Answer 7

Chapter 9, Problem 1QC

To determine

To identify: The correct option related to liabilities.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Option (b)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.

Explanation for correct answer: Allowance for bad debts is a contra asset account to accounts receivable. It does not belong to estimated liability. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because estimated vacation pay is the obligation for the company that the company needs to pay to the employees. Hence, it is the liability for the company.
Option (c) is incorrect because income taxes payable is the obligation for the company that the company needs to pay to the government. Hence, it is the liability for the company.
Option (d) is incorrect because estimated warranty payable is the obligation for the company that the company needs to pay to the customers. Hence, it is the liability for the company.