Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.?List AList B_____1. Long-term debt maturing within one year of the balance sheet date.a. FICA_____2. Borrowing from another company with maturities up to 270 days.b. Acid-test ratio_____3. Classifying liabilities as either current or long-term helps investors and creditors assess this.c. Accrual accounting_____4. Cash, short-term investments, and accounts receivable all divided by current liabilities.d. Recording a contingent liability_____5. Incurred on a notes payable.e. Deferred revenues_____6. Interest expense is recorded in the period interest is incurred rather than in the period interest is
paid.f. The riskiness of a business's obligations_____7. Loss is reasonably possible and amount is reasonably estimable.g. Current portion of long-term debt_____8. Loss is probable and amount is reasonably estimable.h. Disclosure of a contingent liability_____9. Gift cards.i. Interest expense_____10. Social Security and Medicare.j. Commercial paper
What will be an ideal response?
| ? | List A | List B |
| __g__ | 1. Long-term debt maturing within one year of the balance sheet date. | a. FICA |
| __j__ | 2. Borrowing from another company with maturities up to 270 days. | b. Acid-test ratio |
| __f__ | 3. Classifying liabilities as either current or long-term helps investors and creditors assess this. | c. Accrual accounting |
| __b__ | 4. Cash, short-term investments, and accounts receivable all divided by current liabilities. | d. Recording a contingent liability |
| __i__ | 5. Incurred on a notes payable. | e. Deferred revenues |
| __c__ | 6. Interest expense is recorded in the period interest is incurred rather than in the period interest is paid. | f. The riskiness of a business's obligations |
| __h__ | 7. Loss is reasonably possible and amount is reasonably estimable. | g. Current portion of long-term debt |
| __d__ | 8. Loss is probable and amount is reasonably estimable. | h. Disclosure of a contingent liability |
| __e__ | 9. Gift cards. | i. Interest expense |
| __a__ | 10. Social Security and Medicare. | j. Commercial paper |
You might also like to view...
A cost that has characteristics of both a variable cost and a fixed cost is called a:
A) variable/fixed cost B) mixed cost C) discretionary cost D) sunk cost
Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired.Demers earns income and pays dividends as follows: 2019 2020 2021Net income$100,000 $120,000 $130,000 Dividends 40,000 50,000 60,000 ??Assume the initial value method is applied.?How much does Pell record as Income from Demers for the year ended December 31, 2021?
A. $98,400. B. $56,000. C. $97,000. D. $48,000. E. $50,400.
An unconscionable contract is one that is so unfair and one sided that it would be unreasonable to enforce it.
Answer the following statement true (T) or false (F)
We can write the true relationship between the nominal interest rate and the real rate and expected inflation as:
A) (1 + r) = (1 + r) × (1 + h*) B) r = (1 + r*) × (1 + h) - 1 C) r* = (1 + r) × (1 + h) -1 D) r = (1 + r*) × (1 + h) + 1