1. Be able to classify liabilities as current or non-current liabilities and how they are ordered on the balance sheet. 2. Be able to identify the amount of interest payable that should be included on the period end balance sheet (review from chapter 3 adjusting entries). 3. Know what happens when a company borrows money with a note payable (date money borrowed, accruing interest if necessary, and the payment at maturity). 4. Understand payroll liabilities and who is responsible for them (the employer or the employee). 5. Understand the current portion of long-term debt. 6. Know when a loss contingency should be reported as a contingent liability and a loss created. 7. Be able to compute the current ratio