Help with Accounting Problems?
Could help me please to match these 14 types? THanks.
Listed below are common types of current liabilities, contingencies, and
Commitments:
a. Accounts payable I. Income taxes payable
b. Bank loans and commercial paper j. Property taxes payable
c. Notes payable k. Promotional costs
d. Dividends payable l. Product warranty liability
e. Sales and excise taxes payable m. Vacation pay liability
f. Current portion of long-term debt n. Contingent liability
g. Payroll liabilities o. Commitment
h. Unearned revenues
1. For each of the following statements, identify the category above to which it
Gives rise or with which it is most closely associated:
1. A company agrees to replace parts of a product if they fail.
2. An employee earns one day off for each month worked.
3. A company signs a contract to lease a building for five years.
4. A company puts discount coupons in the newspaper.
5. A company agrees to pay insurance costs for employees.
6. A portion of a mortgage on a building is due this year.
7. The board of directors declares a dividend.
8. A company has trade payables.
9. A company has a pending lawsuit against it.
10. A company arranges for a line of credit.
11. A company signs a note due in 60 days.
12. A company operates in a state that has a sales tax.
13. A company earns a profit that is taxable.
14. A company owns buildings that are subject to property taxes.
