A current liability will be

Paid or fulfilled within one year

What is Accrued Liabilities?

Expenses to be paid in the future

Social Security and Medicare tax

What are the key events for the issuer of notes payable?

Recording principal paid, Establishing the note

The adjusting journal entry to accrue interest on a short-term note includes a

Debit to Interest Expense and a credit to Interest Payable.

What example increases a liability account?

Goods or services purchased on credit

Limon purchased $500 of merchandise on account. The entry to record this transaction includes:

Credit to Accounts Payable of $500

What example decreases a liability account?

All or part of the obligation has been paid

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Chapter 10-Liabilities

15 termsStudBud Administration48 plays

Accounting Quiz

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Questions 15

Answers

1
Which of the following are current liabilities?
Note Payable due in 23 months
Cash
Salaries and Wages Payable
Accounts receivable
2
A current liability will be
Received in cash after one year
Paid or fulfilled after one year
Paid or fulfilled within one year
Received in cash within one year
3
Interest arises only when time passes
True
False
4
What is Accrued Liabilities?
Portion of long-term debt due in the current year
Expenses to be paid in the future
Goods or services purchased on account
Short-term debt due in the current year
5
FICA includes
Federal Unemployment Taxes
State Unemployment Taxes
Charitable Donations
Social Security and Medicare tax
6
What is Non-current liability?
Received cash within one year
Paid within one year
Received cash after one year
Paid sometime after one year
7
What are the key events for the issuer of notes payable?
Recording interest received
Recording principal paid
Establishing the note
Recording the use of the founds
8
The adjusting journal entry to accrue interest on a short-term note includes a
No journal entry
Debit to Interest Expense and a credit toCash
Debit to Interest Expense and a credit to Interest Payable.
Credit to Interest Expense and a debit to Interest Payable.
9
What example increases a liability account?
Prepaid goods or services have been delivered
Goods or services purchased on credit
All or part of the obligation has been paid
10
Accruing a liability always involves _____ expenses and _____ liabilities.
decreasing; increasing
increasing; decreasing
increasing; increasing
decreasing; decreasing
11
Limon purchased $500 of merchandise on account. The entry to record this transaction includes:
Credit to Inventory of $500
Credit to Cash of $500
Credit to Notes Payable of $500
Credit to Accounts Payable of $500
12
What example decreases a liability account?
Expense incurred to be paid in the future
All or part of the obligation has been paid
Payments received in advance
Accrued interest
13
A short-term note due in 90 days would be classified as a current
True
False
14
Choose one main category of Accrued Payroll
Payroll Additions
Advertising
Payroll Deductions
None
15
A 6-month note payable is reported as a
Liability
Current liability
Non-current liability
Expense

Chapter 10-Liabilities Flashcards | StudBud